Ġġ yatirim menkul deĞerler a.ġ. and its ......for the year ended 31 december 2009 1. we have...
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Ġġ YATIRIM MENKUL DEĞERLER A.ġ.
AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2009
(Translated into English from the Original Turkish Report)
CONVENIENCE TRANSLATION OF
REPORT AND FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH
To the Board of Directors of
ĠĢ Yatırım Menkul Değerler A.ġ.
Istanbul
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
1. We have audited the accompanying consolidated financial statements of ĠĢ Yatırım Menkul Değerler
A.ġ. (the “Company”) and its subsidiaries (together the “Group”) comprising the consolidated balance
sheet as of 31 December 2009 and the consolidated income statement, consolidated statement of
changes in equity and consolidated cash flows statement for the year then ended, and a summary of
significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
2. Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting standards published by the Capital Markets Board. This responsibility
includes; designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error; selecting and applying appropriate accounting policies; and making accounting estimates that
are reasonable in the circumstances.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards published by the Capital Markets Board.
Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the Group’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the Group
management, as well as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
6. In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the financial position of ĠĢ Yatırım Menkul Değerler A.ġ. and its subsidiaries as of 31
December 2009 and their financial performance and their cash flows for the year then ended in
accordance with the financial reporting standards published by the Capital Markets Board.
Istanbul, 31 March 2010
DRT BAĞIMSIZ DENETĠM VE SERBEST MUHASEBECĠ MALĠ MÜġAVĠRLĠK A.ġ.
Member of DELOITTE TOUCHE TOHMATSU
Saim Üstündağ
Partner
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED BALANCE SHEET
AS OF 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
1
ASSETS
Note
Current Period
31 December
2009
Previous Period
31 December
2008
Current Assets 2.388.299.822 1.428.562.970
Cash and cash equivalents 6 1.371.825.099 933.049.887
Financial investments 7 394.408.529 244.014.821
Trade receivables 10 592.068.881 237.559.859
Other receivables 11 22.691.429 2.140.267
Other current assets 26 7.305.884 11.798.136
Non-current Assets 66.219.632 54.276.423
Trade receivables 10 - -
Other receivables 11 - -
Financial investments 7 18.208.365 9.619.819
Investments accounted for under equity method 16 37.214.660 35.802.580
Tangible fixed assets 18 8.150.043 5.578.973
Intangible fixed assets 19 1.527.344 1.301.180
Goodwill 20 - -
Deferred tax assets 35 1.119.220 1.604.365
Other non-current assets 26 - 369.506
TOTAL ASSETS 2.454.519.454 1.482.839.393
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED BALANCE SHEET
AS OF 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
2
LIABILITIES
Note
Current Period
31 December
2009
Previous Period
31 December
2008
Current Liabilities 1.937.221.474 1.071.643.840
Financial liabilities 8 1.322.793.993 889.267.721
Other financial liabilities 9 2.557.944 2.921.747
Trade payables 10 597.624.644 166.592.286
Other payables 11 5.434.866 6.638.376
Current tax payable 35 1.434.617 644.443
Provisions 22 529.306 386.136
Provisions related to employee benefits 24 3.527.260 3.333.735
Other current liabilities 26 3.318.844 1.859.396
Non-current Liabilities 1.690.178 1.265.522
Financial liabilities 8 - -
Other financial liabilities 9 - -
Trade payables 10 - -
Other payables 11 - -
Provisions 22 - -
Provisions related to employee benefits 24 1.690.178 1.265.522 Deferred tax liabilities 35 - -
Other non-current liabilities 26 - -
EQUITY 515.607.802 409.930.031
Shareholders’ Equity 334.180.287 272.688.675
Paid-in capital 27 119.387.000 119.387.000
Inflation adjustment to share capital 16.394 16.394
Premium in excess of par 40.656.600 40.656.600
Valuation funds 27 2.909.805 (2.732.493)
Currency translation reserve (246.807) (253.595)
Restricted reserves appropriated from profits 27 10.784.730 7.860.998
Retained earnings 27 92.174.105 63.048.170
Net profit / (loss) for the period 68.498.460 44.705.601
Minority Interest 181.427.515 137.241.356
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY 2.454.519.454 1.482.839.393
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
3
Note
Current Period
1 January -
31 December 2009
Previous Period
1 January -
31 December 2008
CONTINUED OPERATIONS
Sales revenue 28
24.445.660.762 33.334.235.707
Cost of sales (-) 28 (24.411.623.147) (33.346.230.438)
Interest and derivative income / (expenses) from operating activities (net) 28 74.896.431 46.347.728
Income from services (net) 28 82.752.379 56.903.444
Other operating income / (expenses) (net) 28 10.255.845 12.099.781
GROSS PROFIT / (LOSS)
201.942.270 103.356.222
Marketing, sales and distribution expenses (-) 29-30 (14.575.595) (23.223.922)
General administrative expenses (-) 29-30 (76.748.818) (67.236.579)
Research and development expenses (-) 29-30 - -
Other operating income 31 1.836.927 13.879.446
Other operating expenses (-) 31 (4.240.362) (5.935.092)
OPERATING PROFIT / (LOSS)
108.214.422 20.840.075
Share in net profit / (loss) of investments accounted for under equity method 16 2.384.040 4.363.903
(Non-operating) Finance income 32 20.096.170 29.768.283
(Non-operating) Finance expenses (-) 33 (3.545.309) (2.111.760)
PROFIT / (LOSS) BEFORE TAXATION
FROM CONTINUED OPERATIONS 127.149.323 52.860.501
Tax benefit / (charge) from continued operations (13.220.354) (10.964.871)
- Current tax benefit / (charge) 35 (13.055.587) (11.123.326)
- Deferred tax benefit / (charge) 35 (164.767) 158.455
PROFIT / (LOSS) FOR THE PERIOD
FROM CONTINUED OPERATIONS 113.928.969 41.895.630
PROFIT / (LOSS) FOR THE PERIOD 113.928.969 41.895.630
Attributable to
Minority interest 45.430.509 (2.809.971)
Equity holders of the parent 68.498.460 44.705.601
113.928.969 41.895.630
Earnings / (loss) per share from operating activities 36 0,5738 0,3745
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
4
Note
Current Period
1 January -
31 December 2009
Previous Period
1 January -
31 December 2008
PROFIT / (LOSS) FOR THE PERIOD 113.928.969 41.895.630
Change in the fair value of available for sale financial assets 7 6.407.553 (6.914.276)
Tax benefit / (charge) of other comprehensive income 35 (320.378) 345.714
Change in currency translation reserve 6.788 (16.892)
OTHER COMPREHENSIVE INCOME (AFTER TAX) 6.093.963 (6.585.454)
TOTAL COMPREHENSIVE INCOME 120.022.932 35.310.176
Attributable to
Minority interest 45.875.386 (3.282.948)
Equity holders of the parent 74.147.546 38.593.124
120.022.932 35.310.176
Earnings / (loss) per share 36 0,6211 0,3233
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
5
Paid-in Capital
Premium in
Excess of
Par
Valuation
Fund
Inflation
Adjustment to
Share Capital
Restricted
Reserves
Appropriated
from Profits
Currency
Translation
Reserve
Net
Profit / (Loss)
for the Period
Retained
Earnings
Total Equity
Attributable to
Equity Holders
of the Parent
Minority
Interest Total
Balances as of 1 January 2009 119.387.000 40.656.600 (2.732.493) 16.394 7.860.998 (253.595) 44.705.601 63.048.170 272.688.675 137.241.356 409.930.031
Effect of the business combinations in entities
under common control (acquisition of
subsidiary) - - - - - - - 282.759 282.759 (1.297.890) (1.015.131)
Comprehensive income / (loss) for the period - - 5.642.298 - - 6.788 68.498.460 - 74.147.546 45.875.386 120.022.932
Transfers to retained earnings - - - - - - (44.705.601) 44.705.601 - - -
Transfers to reserves - - - - 2.923.732 - - (2.923.732) - - -
Dividends paid - - - - - - - (12.938.693) (12.938.693) (391.337) (13.330.030)
Balances as of 31 December 2009 119.387.000 40.656.600 2.909.805 16.394 10.784.730 (246.807) 68.498.460 92.174.105 334.180.287 181.427.515 515.607.802
Paid-in Capital
Premium in
Excess of
Par
Valuation
Fund
Inflation
Adjustment to
Share Capital
Restricted
Reserves
Appropriated
from Profits
Currency
Translation
Reserve
Net
Profit / (Loss)
for the Period
Retained
Earnings
Total Equity
Attributable to
Equity Holders
of the Parent
Minority
Interest Total
Balances as of 1 January 2008 119.387.000 40.656.600 3.363.092 16.394 4.059.152 (236.703) 38.383.852 37.966.164 243.595.551 162.710.607 406.306.158
Effect of the business combinations in entities
under common control (acquisition of
subsidiary) - - - - - - - - - (9.887.470) (9.887.470)
Gains on sale of properties and equity
participations to be transferred to capital - - - - 864.102 - - (864.102) - - -
Comprehensive income / (loss) for the period - - (6.095.585) - - (16.892) 44.705.601 - 38.593.124 (3.282.948) 35.310.176
Transfers to retained earnings - - - - - - (38.383.852) 38.383.852 - - -
Transfers to reserves - - - - 2.937.744 - - (2.937.744) - - -
Dividends paid - - - - - - - (9.500.000) (9.500.000) (12.298.833) (21.798.833)
Balances as of 31 December 2008 119.387.000 40.656.600 (2.732.493) 16.394 7.860.998 (253.595) 44.705.601 63.048.170 272.688.675 137.241.356 409.930.031
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
AUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
The accompanying notes form an integral part of these consolidated financial statements.
6
STATEMENT OF CASH FLOWS Current Period Previous Period
1 January - 1 January -
Cash flows from operating activities Note 31 December 2009 31 December 2009
Net profit / (loss) for the period 113.928.969 41.895.630
- Tax charge 35 13.220.354 10.964.871
- Interest accruals on the financial liabilities 8 (299.380) (7.132.908)
- Interest and foreign exchange accruals on cash and cash equivalents 6 (349.742) 3.784.913
- Other expense accruals 22 3.492.744 69.811
- Gains / (losses) on sales of tangible fixed assets 31 (6.378) (17.086)
- Accruals on financial investments (38.860.299) (7.316.521)
- Negative goodwill recognized as income - (11.781.149)
- Accrued expenses / (income) on derivate transactions 7-9 (2.185.283) 1.315.555
- Provisions related to employee benefits (retirement pay provision) 24 522.690 328.036
- Provisions related to employee benefits (other) 24 193.525 (2.745)
- Dividend income (5.366.380) (3.897.564)
- (Income) / losses from investments accounted for under equity method 16 (2.384.040) (4.363.903)
- Depreciation of tangible fixed assets 18 1.777.713 1.312.075
- Amortization of intangible fixed assets 19 491.184 275.174
84.175.677 25.434.189
(Increase) / decrease in trade receivables 10 (354.509.022) (13.293.214)
(Increase) / decrease in other receivables and current assets (9.767.365) 171.129
Increase / (decrease) in trade payables 10 431.032.358 (15.946.616)
Increase / (decrease) in other payables and other current liabilities (3.035.431) (108.597)
Increase / (decrease) in provisions (58.206) (339.044)
Change in working capital 147.838.011 (4.082.153)
Taxes paid (18.187.453) (20.724.434)
Employee benefits paid 24 (98.034) (76.246)
Net cash provided from/ (used in) operating activities 129.552.524 (24.882.833)
Cash flows from investing activities
Change in financial investments (net) (114.130.804) 41.694.702
Dividends received from equity investments 700.385 366.417
Dividends received from investments accounted for under equity method 977.528 851.794
Dividends received from other security investments 4.665.995 3.531.147
Acquisitions of tangible fixed assets 18 (4.336.582) (2.500.190)
Acquisitions of intangible fixed assets 19 (693.058) (612.281)
Changes in currency translation reserve (56.326) 52.746
Proceeds on sale of tangible fixed assets 27.434 39.664
Acquisitions of subsidiary shares 3 (1.015.131) -
Net cash (used in) / provided from investing activities (113.860.559) 43.423.999
Cash flows from financing activities
New financial liabilities raised 8 1.317.705.652 883.880.000
Repayment of financial liabilities 8 (883.880.000) (623.336.021)
Change in other financial liabilities 2.237.883 (1.369.320)
Dividends paid
- to equity holders of the parent (12.938.693) (9.500.000)
- to minority interest (391.337) (12.298.833)
Net cash provided from financing activities 422.733.505 237.375.826
Net change in cash and cash equivalents 438.425.470 255.916.992
Cash and cash equivalents at the beginning of period 926.079.539 670.162.547
Cash and cash equivalents at the end of period 6 1.364.505.009 926.079.539
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
7
1. ORGANIZATION AND OPERATIONS OF THE GROUP
The purpose of ĠĢ Yatırım Menkul Değerler A.ġ. (“the Company") is to perform capital market
activities in accordance with its Articles of Association and Capital Markets Law number 2499 as
amended by Law number 3794. In this respect, the Company obtained the establishment permission
through the Capital Markets Board’s (the “CMB”) meeting No: 51/1515 on 5 December 1996.
The Company is located in Turkey and its contact information is stated below:
ĠĢ Kuleleri Kule - 2 Kat 12, 4. Levent 34330 BeĢiktaĢ / Istanbul / Turkey
Telephone: + 90 (212) 350 20 00 Fax: + 90 (212) 350 20 01
http://www.isyatirim.com.tr
The Company is a Türkiye ĠĢ Bankası A.ġ. Group entity and Türkiye ĠĢ Bankası A.ġ. is the main
shareholder with 65,65% shareholding. The equity shares of the Company are traded on the stock
exchange.
As of the balance sheet date, the Company’s personnel number is 348 (31 December 2008: 318).
The Company and its consolidated subsidiaries are referred to as “the Group” in this report. The
operations of the affiliates and subsidiaries included in the consolidation are stated below:
CamiĢ Menkul Değerler A.ġ:
The purpose of this subsidiary is to perform capital market activities in accordance with its Articles
of Association and Capital Markets Law and the related regulation. In this respect, the subsidiary is
operating as a securities brokerage house in the capital market activities and established in 1984.
ĠĢ Yatırım Ortaklığı A.ġ:
The purpose of this subsidiary is to perform capital market activities in accordance with its Articles
of Association and Capital Markets Law and the related regulation. This subsidiary performs capital
market activities and managing its own portfolio.
ĠĢ Portföy Yönetimi A.ġ:
This subsidiary was registered with the Istanbul Trade Registry on 23 September 2000 and its
foundation was published in the Trade Registry Gazette No: 5168 on 6 November 2000. Its purpose
is to perform capital market activities in accordance with its Articles of Association and Capital
Markets Law and the related regulation. This participation offers only portfolio management and
investment advisory services within the context of capital market activities to institutional investors.
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ:
The operations of this equity participation are mainly making long-term investments in
entrepreneurships founded or to be found in Turkey with a development potential in need of capital.
Maxis Securities Ltd:
The subsidiary has been established with the official registration with “The Official Seal of the
Registrar of Companies” on 8 August 2005 located on 7 Princes Street, London. The purpose of the
subsidiary is to perform profitable operations in the international capital markets.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
8
1. ORGANIZATION AND OPERATIONS OF THE GROUP (cont’d)
The details of the Group’s subsidiaries and affiliates included in consolidation are as follows:
Place of
incorporation Ownership Business activity CamiĢ Menkul Değerler A.ġ. Istanbul 99,79% Securities brokerage
ĠĢ Yatırım Ortaklığı A.ġ. Istanbul 29,73% Investment trust
Maxis Securities Ltd. London 100,00% Securities brokerage
ĠĢ Portföy Yönetimi A.ġ. Istanbul 70,00% Portfolio management
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ. Istanbul 29,00% Private equity
Dividends Distributable:
The Board of Directors has not decided on any proposal related to dividend distribution to the
shareholders. Since dividend distribution is subject to approval of the General Assembly, any
liability regarding to dividends distributable has not been recognized in the accompanying
consolidated financial statements. The information regarding resources subject to profit distribution
is disclosed in Note 27.
Approval of Financial Statements:
The financial statements have been approved by the Board of Directors and are authorized for
issuance on 31 March 2010. The General Assembly has the authority to amend financial statements.
2. BASIS OF THE FINANCIAL STATEMENTS
2.1. Basis of Presentation
Preparation of Financial Statements and Accounting Standards:
The Company and its Turkish subsidiaries maintain their books of account and prepare their
statutory financial statements in accordance with accounting principles in the Turkish Commercial
Code (“TCC”) and tax legislation. Subsidiaries operating in foreign countries maintain their books
of account in the currencies of those countries and prepare their statutory financial statements in
accordance with the prevailing legislation in those countries.
The Capital Markets Board (“CMB”) Communiqué Serial: XI, No: 29 “Communiqué on Financial
Reporting Standards in Capital Markets” (“Communiqué Serial: XI, No: 29”) provides principles
and standards on the preparation and presentation of financial statements. The Communiqué is
applicable commencing from the first interim financial statements prepared subsequent to 1 January
2008, and Communiqué Serial: XI, No: 25 “Communiqué on Capital Market Accounting Standards”
(“Communiqué Serial: XI, No: 25”) is annulled with this communiqué. As per this communiqué, the
financial statements should be prepared in accordance with the International Financial Reporting
Standards (“IAS/IFRS”) as endorsed by the European Union (“EU”). However companies will apply
IASs/IFRSs until the differences between the standards accepted by the European Union and the
standards issued by International Accounting Standards Board (“IASB”) are announced by Turkish
Accounting Standards Board (“TASB”). In this respect, Turkish Accounting / Financial Reporting
Standards issued by TASB that are not controversial to the adopted standards shall be taken as a
basis in the application.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
9
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.1. Basis of Presentation (cont’d)
Preparations of Financial Statements and Accounting Standards (cont’d):
As the differences between the International Financial Reporting Standards (“IAS/IFRS”) as
endorsed by the European Union and the Turkish Accounting / Financial Reporting Standards
(“TAS/TFRS”) have not been declared as of the date of this report, the accompanying financial
statements and notes are prepared in accordance with IAS/IFRS as declared in the Communiqué
Serial: XI, No: 29 with the required formats announced by the CMB on 14 April 2008 and 9 January
2009.
Presentation and Functional Currency:
The individual financial statements of each group entity are presented in the currency of the primary
economic environment in which the entity operates (its functional currency). For the purpose of the
consolidated financial statements, the results and financial position of each entity are expressed in
Turkish Lira, which is the functional and presentation currency of the Company.
Preparation of Financial Statements in Hyperinflationary Periods:
Based on the CMB decision numbered 11/367 dated 17 March 2005, for the companies operating in
Turkey and preparing financial statements in accordance with CMB Accounting Standards
(including companies adopting IAS/ IFRS), the inflation accounting application has been ceased
beginning from 1 January 2005. Within this context, IAS 29 “Financial Reporting in
Hyperinflationary Economies” issued by IASB has not been applied beginning from 1 January 2005.
Assumption of Going Concern:
The consolidated financial statements of the Group are prepared on a going concern basis, which
presumes the realization of assets and settlement of liabilities of the Company and its consolidated
subsidiaries and affiliates in the normal course of operations and in the foreseeable future
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
10
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.1. Basis of Presentation (cont’d)
Consolidation:
The details of the Group’s subsidiaries and affiliates as of 31 December 2009 and 31 December
2008 are as follows:
Subsidiaries
Place of
incorporation
Ownership
as of
31 December
2009
Ownership
as of
31 December
2008 Business activity
CamiĢ Menkul Değerler A.ġ. Istanbul 99,79% 99,79% Securities brokerage
ĠĢ Yatırım Ortaklığı A.ġ. (*) Istanbul 29,73% 29,12% Investment trusts
Maxis Securities Ltd. London 100,00% 100,00% Securities brokerage
ĠĢ Portföy Yönetimi A.ġ. Istanbul 70,00% 70,00% Portfolio management
(*) This company is fully consolidated since the parent has the power to exercise control over the financial
and operating policy decisions of the investee.
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled or jointly controlled by the Company (its subsidiaries). Control is achieved where
the Company has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective date of acquisition or up to the effective date of disposal, as
appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their
accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Minority interests in the net assets of the consolidated subsidiaries are identified separately from the
Group’s equity therein. Minority interests consist of the amount of those interests at the date of the
original business combination and the minority’s share of changes in equity since the date of the
combination. Losses applicable to the minority in excess of the minority’s interest in the
subsidiary’s equity are allocated against the interests of the Group except to the extent that the
minority has a binding obligation and is able to make further investments to cover the losses.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
11
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.1. Basis of Presentation (cont’d)
Consolidation (cont’d):
Affiliates:
An affiliate is an entity over which the Group has significant influence and that is neither a
subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not a control or joint control over
those policies. The details of the Group’s affiliates as of 31 December 2009 and 31 December 2008
are as follows:
Affiliates
Place of
incorporation
Ownership
as of
31 December
2009
Ownership
as of
31 December
2008 Business activity
ĠĢ GiriĢim Sermayesi
Yatırım Ortaklığı A.ġ. Istanbul 29,00% 29,00% Private equity
The results of operations, assets and liabilities of affiliates, except for the disposal groups that are
classified as held for sale in accordance with IFRS 5 “Non-Current Assets Held for Sale and
Discontinued Operations”, are incorporated in the accompanying financial statements using the
equity method of accounting. Under the equity method, affiliates are carried in the consolidated
balance sheet at cost as adjusted for post-acquisition changes in the Group’s share in the net assets
of the affiliate, less any impairment in the value of individual investments. Losses of an affiliate in
excess of the Group’s interest in that affiliate (which includes any long-term interests that, in
substance, form part of the Group’s net investment in the associate) are not recognized.
Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable
assets, liabilities and contingent liabilities of the affiliate recognized at the date of acquisition is
recognized as goodwill. Goodwill is included within the carrying amount of the investment and is
assessed for impairment as part of the investment. Any excess of the Group’s share of the net fair
value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after
reassessment, is recognized immediately in profit or loss.
Where a group entity transacts with an affiliate of the Group, profits and losses are eliminated to the
extent of the Group’s interest in the relevant affiliate.
2.2. Changes in the Accounting Policies
The changes made in the accounting policies are applied retrospectively and the prior year financial
statements are restated.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
12
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.3. Changes in the Accounting Estimates and Errors
If the application of changes in the accounting estimates affects the financial results of a specific
period, the accounting estimate change is applied in that specific period, if they affect the financial
results of current and following periods; the accounting policy estimate is applied prospectively in
the period in which such change is made. The Group did not have any major changes in the
accounting estimates during the current period.
Significant accounting errors that are detected in the current period are applied retrospectively and
prior year financial statements are restated accordingly.
2.4. Adoption of New and Revised International Financial Reporting Standards
The following new and revised Standards and Interpretations have been adopted in the current
period and have affected the amounts reported and disclosures in these financial statements. Details
of other standards and interpretations adopted in these financial statements but that have had no
impact on the financial statements are set out in the following paragraphs of this section.
Standards affecting presentation and disclosures in 2009 financial statements
IAS 1 (as revised in 2007), “Presentation of Financial Statements”
IAS 1 (2007) has introduced terminology changes (including revised titles for the financial
statements) and changes in the format and content of the financial statements. The Group presents in
the consolidated statement changes in equity all owner changes in equity, whereas all non-owner
changes in equity are presented in the consolidated statement of comprehensive income.
IFRS 7 (Amendment), “Financial Instruments: Disclosures”
The amendments published in March 2009 are applicable for the Group beginning from 1 January
2009. The amendments require enhanced disclosures about fair value measurements and liquidity
risk. The amendment requires additional disclosures for any change in the method for determining
fair value and the reasons for the change. Besides, it is required to establish a three-level hierarchy
for making fair value measurements. It is also required to give additional disclosures regarding any
change in the method for determining fair value and transfers between levels. For the fair value
measurement uses observable inputs that require significant adjustment based on unobservable
inputs, reconciliation from the beginning balances to the ending balances should be presented. If
changing one or more of the inputs based on unobservable data would change fair value
significantly, the entity shall state that fact and disclose the effect of those changes through
sensitivity analysis.
Additionally, for non-derivative financial liabilities including issued financial guarantee contracts,
the maturity analysis is required. It is also required to give separate maturity analysis for derivative
financial liabilities.
The Group has applied the relevant amendments in 2009 and given information about the fair value
levels in Note 39. In the current year, the Group has not made any material transfers among three
level inputs used for fair value measurement.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
13
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.4. Adoption of New and Revised International Financial Reporting Standards (cont’d)
Standards affecting presentation and disclosures in 2009 financial statements (cont’d)
IFRS 8, “Operating Segments”
IFRS 8 “Operating Segments” supersedes IAS 14 “Segment Reporting”. The standard specifies how
an entity should report information about its operating segments based on the segment criteria used
in internal reporting which are prepared by the management.
The Group applied the amendments about IFRS 8 in 2009 and operating segments are given in Note
5. The Group has determined operating segments in line with internal reports that are regularly
reviewed by the entity's chief operating decision makers. Since the Group predominantly operates in
Turkey and only in marketable securities sector, segment information in the accompanying financial
statements are configured according to structure of the Group’s operating entities as securities
brokerage, investment trust and portfolio management. Since the Group’s geographical operations
outside of Turkey are not identified as a reportable geographical segment in the context of
materiality of the consolidated financial statements and are not presented in the accompanying
consolidated financial statements.
The adoption of IFRS 8 has no material impact on the reported results and the financial position of
the Group.
IAS 23 (Revised), “Borrowing Costs”
The Group has adopted the revised standard IAS 23 on borrowing costs starting 1 January 2009.
Borrowing costs that are directly attributable to the acquisition, construction or production of
qualifying assets are capitalized as part of the cost of that asset. In prior years, the Group had
expensed the related borrowing costs in the statement of income in the year that the costs were
incurred. The adoption of IAS 23 (Revised) was applied on a prospective basis with no restatement
of prior period amounts.
Standards and Interpretations those are effective in 2009 with no impact on the 2009 financial
statements
The following new and revised Standards and Interpretations have also been adopted in these
financial statements. Their adoption has not had any significant impact on the amounts reported in
these financial statements but may impact the accounting for future transactions or arrangements.
IFRS 1 (Amendment), “First-time Adoption of International Financial Reporting Standards” and
IAS 27, “Consolidated and Separate Financial Statements” (Amendment to the Cost of
Investments for First-time Adoption of IFRS)
IAS 38, “Intangible Assets”
IAS 40, “Investment Property”
IAS 20, “Accounting for Government Grants and Disclosure of Government Assistance”
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
14
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Adoption of New and Revised International Financial Reporting Standards (cont’d)
Standards and Interpretations that are effective in 2009 with no impact on the 2009 financial
statements (cont’d)
IFRIC 13, “Customer Loyalty Programs”
IFRS 2 (Amendment), “Share-based Payments” (Amendments for vesting conditions and
cancellations)
IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations”
IAS 1, “Presentation of Financial Statements” and IAS 32, “Financial Instruments: Presentation”
(Amendment on puttable financial instruments and obligations arising on liquidation)
IAS 39, “Financial Instruments: Recognition and Measurement” (Amendment on classification of
financial instruments and embedded derivatives)
Improvements on May 2008 (IAS 1, “Presentation of Financial Statements”, IAS 16, “Property,
Plant and Equipment”, IAS 19, “Employee Benefits”, IAS 20, “Government Grants”, IAS 23,
“Borrowing Cost”, IAS 27, “Consolidated and Separate Financial Statements”, IAS 28,
“Investment in Associates”, IAS 31, “Interest in Joint Ventures”, IAS 29, “Financial Reporting in
Hyperinflationary Economies”, IAS 36, “Impairment of Assets”, IAS 39, “Financial Instruments:
Recognition and Measurement”, IAS 40, “Investment Property”, IAS 41, “Agriculture”
IFRIC 15, “Agreements for the Construction of Real Estate”
IFRIC 16, “Hedges of a Net Investment in a Foreign Operation”
IFRIC 18, “Transfers of Assets from Customers”
Standards and Interpretations that are not yet effective in 2009 and have not been early
adopted
IFRS 3, “Business Combinations”, IAS 27, “Consolidated and Separate Financial Statements”,
IAS 28, “Investment in Associates”, IAS 31, “Interest in Joint Ventures” (Comprehensive
revision on applying the acquisition method)
IFRS 9, “Financial Instruments: Classification and Measurement”
IAS 24 (Revised 2009), “Related Party Disclosures”
IFRIC 17, “Distributions of Non-cash Assets to Owners”
IFRIC 19, “Extinguishing Financial Liabilities with Equity Instruments”
Amendments related to Annual Improvements to IFRS (2009)
As part of the Annual Improvement project, in addition to the amendments mentioned above, other
amendments were made to various standards and interpretations. These amendments are effective
for annual periods beginning on or after 1 January 2010. The Group has not yet had an opportunity
to consider the potential impact of the adoption of these amendments.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
15
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies
Revenue Recognition:
The Group immediately recognizes gain on sale of marketable securities in its portfolio, when
proceeds on such sale transactions are deemed to be collectable while dividend and similar type of
revenue are recognized when proceeds on such sale transactions are deemed to be collectable at
maturity.
Interest income and expenses are recognized in the income statement on an accrual basis. Interest
income include coupon payments on fixed income securities, interest income on the Stock Exchange
Money Market transactions and reverse repurchase agreements and interest on guarantees given for
futures transactions.
Revenue generated from service contract is recognized by reference to the stage of completion of the
contractual obligation. In this respect, fees and commissions generated as a consequence of the
completion of the service contract or service, mutual fund management fees, portfolio management
commissions and agency commissions are recognized on an accrual basis.
Dividend revenue from equity shares is recognized when the shareholders’ rights to receive payment
have been established.
Tangible Fixed Assets:
Tangible fixed assets are carried at cost less accumulated depreciation and any permanent
impairment loss.
Properties in the course of construction for production, rental or administrative purposes, or for
purposes not yet determined, are carried at cost, less any recognized impairment loss. Cost includes
professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the
Group’s accounting policy. These assets are depreciated, on the same basis as other tangible fixed
assets, when the assets are ready for their intended use.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and
properties under construction, over their estimated useful lives, using the straight-line method. The
estimated useful lives, residual values and depreciation method are reviewed at each year end, with
the effect of any changes in estimate accounted for on a prospective basis.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as
owned assets or, where shorter, the term of the relevant lease.
The gain or loss arising on the disposal or retirement of an item of tangible fixed assets is
determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognized in the profit or loss.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
16
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Leasing Transactions:
Leasing - the Group as Lessee:
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognized as assets of the Group at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as
to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
charged to profit or loss, unless they are directly attributable to qualifying assets, in which case they
are capitalized in accordance with the Group’s general policy on borrowing costs.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the
term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight-line basis over the lease term.
Intangible Fixed Assets:
Goodwill:
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share
of the net identifiable assets of the acquired subsidiary/associate at the date of the acquisition.
Goodwill on acquisitions of associates is included in “affiliates” and is tested for impairment as part
of the overall balance. Separately recognized goodwill is tested annually for impairment and carried
at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains
and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity
sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocations
made to those cash-generating units or groups of cash-generating units that are expected to benefit
from the business combination in which the goodwill arose.
Intangible Fixed Assets Acquired:
Intangible assets acquired separately are reported at cost less accumulated amortization and
accumulated impairment losses. Amortization is charged on a straight-line basis over their estimated
useful lives. The estimated useful life and amortization method are reviewed at the end of each
annual reporting period with the effect of any changes in estimate being accounted for on a
prospective basis.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
17
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Intangible Fixed Assets (cont’d):
Trademarks and Licenses:
Acquired trademarks and licenses are shown at historical cost. Trademarks and licenses have a finite
useful life and are carried at cost less accumulated amortization. Amortization is calculated using
the straight-line method to allocate the cost of trademarks and licenses over their estimated useful
lives (not exceeding five years).
Computer Software:
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are amortized over their estimated useful lives (3 - 5
years).
Costs associated with developing or maintaining computer software programs are recognized as an
expense as incurred. Costs that are directly associated with the development of identifiable and
unique software products controlled by the Group, and that will probably generate economic
benefits exceeding costs beyond one year, are recognized as intangible assets. Costs include the
software development employee costs and an appropriate portion of relevant overheads. Computer
software development costs recognized as assets are amortized over their estimated useful lives (not
exceeding three years).
Intangible Fixed Assets Acquired in a Business Combination:
Intangible fixed assets acquired in a business combination are identified and recognized separately from goodwill where they meet the definition of an intangible asset and their fair value can be measured reliably. Cost of such intangible fixed assets is the fair value at the acquisition date. Subsequent to initial recognition, intangible fixed assets acquired in a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the same basis as intangible fixed assets acquired separately.
Impairment of Assets:
Assets that have an indefinite useful life, like goodwill, are not subject to amortization and are tested
annually for impairment. Assets that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less
costs to sell or value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-
financial assets other than goodwill that suffered impairment are reviewed for possible reversal of
the impairment at each reporting date.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
18
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from
the borrowing costs eligible for capitalization.
All other borrowing costs are recognized in the profit or loss in the period in which they are
incurred.
Financial Instruments:
Financial Assets:
Financial investments, except financial assets classified at fair value through profit or loss and
financial assets initially recognized at fair value, are recognized at fair value net of directly
attributable transaction costs. Investments are recognized and derecognized on a trade date where
the purchase or sale of an investment is under a contract whose terms require delivery of the
investment within the timeframe established by the market concerned.
Financial assets are classified into the following specified categories: financial assets as “at fair
value through profit or loss” (“FVTPL”), “held-to-maturity” investments, “available-for-sale”
(“AFS”) financial assets and “loans and receivables”.
Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset and
of allocating interest income over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset, or,
where appropriate, a shorter period.
Income is recognized on an effective interest basis for debt instruments other than those financial
assets designated at FVTPL.
Financial assets at FVTPL
Financial assets at fair value through profit or loss are financial assets held for trading. A financial
asset is classified in this category if acquired principally for the purpose of selling in the short-term.
Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in
this category are classified as current assets.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
19
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Financial Instruments (cont’d):
Financial Assets (cont’d):
Held-to-maturity investments
Investments in debt securities with fixed or determinable payments and fixed maturity dates that the
Group has the positive intent and ability to hold to maturity are classified as held-to-maturity
investments. Held-to-maturity investments are recorded at amortized cost using the effective interest
method less impairment, with revenue recognized on an effective yield basis.
The information on security held, as held-to-maturity by the Group, is given in Note 7.
Available-for-sale financial assets Quoted equity investments and quoted certain debt securities held by the Group that are traded in an
active market are classified as being available- for-sale financial assets and are stated at fair value.
The Group also has investments in unquoted equity investments that are not traded in an active
market but are also classified as available-for-sale financial assets and stated at cost since their value
cannot be reliably measured. Gains and losses arising from changes in fair value are recognized in
other comprehensive income and accumulated for in the investments revaluation reserve with the
exception of impairment losses, interest calculated using the effective interest method, and foreign
exchange gains and losses on monetary assets, which are recognized in profit or loss. Where the
investment is disposed of or is determined to be impaired, the cumulative gain or loss previously
accumulated in the investments revaluation reserve is reclassified to profit or loss.
Dividends on available-for-sale equity instruments are recognized in profit or loss when the Group’s
right to receive the dividends is established.
The fair value of available-for-sale monetary assets denominated in a foreign currency is determined
in that foreign currency and translated at the spot rate at the end of the reporting period. The foreign
exchange gains and losses that are recognized in profit or loss are determined based on the
amortised cost of the monetary asset. Other foreign exchange gains and losses are recognized in
other comprehensive income.
Repurchase and reverse repurchase agreements
Marketable securities sold as part of repurchase agreement commitments (“repo”) are accounted for
in the financial statements and liabilities to counterparties are presented as payables to customers.
Marketable securities held as part of commitments to resale (“reverse repo”) are accounted for as
funds loaned under marketable securities reverse repurchase agreements and accounted for under
cash and cash equivalents in the balance sheet. The difference between purchase and resale prices is
accounted for as interest and amortized during the period of the agreement.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
20
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Financial Instruments (cont’d):
Financial Assets (cont’d):
Loans and receivables
Trade receivables, loans, and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as “loans and receivables”. Loans and receivables are
measured at amortized cost using the effective interest method less any impairment.
The Group extends loans to its customers for trading equity shares.
Impairment of financial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each
balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of
one or more events that occurred after the initial recognition of the financial asset, the estimated
future cash flows of the investment have been impacted. For loans and receivables carried at
amortized cost, the amount of the impairment is the difference between the asset’s carrying amount
and the present value of estimated future cash flows, discounted at the original effective interest
rate.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of trade receivables where the carrying amount is reduced through the use
of an allowance account. When a trade receivable is uncollectible, it is written off against the
allowance account. Subsequent recoveries of amounts previously written off are credited against the
allowance account. Changes in the carrying amount of the allowance account are recognized in
profit or loss.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the
impairment loss decreases and the decrease can be related objectively to an event occurring after the
impairment was recognized, the previously recognized impairment loss is reversed through profit or
loss to the extent that the carrying amount of the investment at the date the impairment is reversed
does not exceed what the amortized cost would have been had the impairment not been recognized.
In respect of AFS equity securities, any increase in fair value subsequent to an impairment loss is
recognized directly in equity.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly
liquid investments which their maturities are three months or less from date of acquisition and that
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes
in value.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
21
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Financial Instruments (cont’d):
Financial Liabilities:
Financial liabilities and equity instruments issued by the Group are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability and
an equity instrument. An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. The accounting policies adopted for specific
financial liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading
or it is designated as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any
resultant gain or loss recognized in profit or loss. The net gain or loss recognized in profit or loss
incorporates any interest paid on the financial liability.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of
transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest
method, with interest expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability
and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability,
or, where appropriate, a shorter period.
Derivative Financial Instruments and Hedge Accounting:
As of the balance sheet date, the Group has derivative financial instrument transactions which
predominantly consist of positions related to forward contracts and contracts indexed to different
indices. The Group uses foreign currency forward contracts and futures to hedge its risks associated
with market fluctuations in connection with trading portfolio transactions. The Group participates in
derivative transactions indexed to foreign currencies and securities, also performs brokerage
activities relating to derivative transactions on behalf of its customers.
As of the balance sheet date, transactions related to derivative financial instruments are entered into
for trading purposes and measured at fair value. Interest and foreign currency gains and losses on
these instruments are accounted for on an accrual basis in the statement of income.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
22
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Business Combinations:
The acquisition of subsidiaries and businesses are accounted for using the purchase method. The
cost of the acquisition is measured at the aggregate of the fair values, at the date of exchange, of
assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange
for control of the acquiree, plus any costs directly attributable to the business combination. The
acquiree’s identifiable assets, liabilities and contingent liabilities that meet the recognition criteria
under IFRS 3, “Business Combinations” are recognized at fair value at the date of acquisition,
except for non-current assets (or disposal groups) that are classified as held for sale in accordance
with IFRS 5 “Non-Current Assets Held for Sale and Discontinued Operations”, which are
recognized and measured at fair value less costs to sell.
Goodwill arising on acquisition is recognized as an asset and initially measured at cost, being the
excess of the cost of the business combination over the Group’s interest in the net fair value of the
identifiable assets, liabilities and contingent liabilities recognized. If, after reassessment, the
Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities exceeds the cost of the business combination, the excess is recognized immediately in
profit or loss.
The interest of minority shareholders in the acquiree is initially measured at the minority’s
proportion of the net fair value of the assets, liabilities and contingent liabilities recognized.
In business combinations under common control, assets and liabilities subject to business
combination are accounted for at carrying value in consolidated financial statements. Statements of
income are consolidated starting from the beginning of the fiscal year in which the business
combination is realized. Financial statements of previous fiscal years are restated in the same
manner in order to maintain consistency and comparability. Any positive or negative goodwill
arising from such business combination is not recognized in the consolidated financial statements.
The residual balance calculated by netting off investment in subsidiary and the share acquired in
subsidiary’s equity is directly accounted for under equity as “effect of the business combinations in
entities under common control” and presented in retained earnings.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
23
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Foreign Currency Transactions:
The individual financial statements of each Group entity are presented in the currency of the
primary economic environment in which the entity operates (its functional currency). For the
purpose of the consolidated financial statements, the results and financial position of each entity are
expressed in Turkish Lira (“TL”), which is the functional currency of the Company, and the
presentation currency for the consolidated financial statements.
In preparing the financial statements of the individual entities, transactions in currencies other than
TL (foreign currencies) are recorded at the rates of exchange prevailing on the date of the
transaction. At each balance sheet date, monetary items denominated in foreign currencies are
retranslated at the rates prevailing on the balance sheet date. Non-monetary items carried at fair
value that are denominated in foreign currencies are retranslated at the rates prevailing on the date
when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
Exchange differences are recognized in profit or loss in the period in which they arise except for:
Exchange differences which relate to assets under construction for future productive use, which
are included in the cost of those assets where they are regarded as an adjustment to interest costs
on foreign currency borrowings;
Exchange differences on transactions entered into in order to hedge certain foreign currency risks
(see below for hedging accounting policies); and
Exchange differences on monetary items receivable from or payable to a foreign operation for
which settlement is neither planned nor likely to occur, which form part of the net investment in
a foreign operation, and which are recognized in the foreign currency translation reserve and
recognized in profit or loss on disposal of the net investment.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the
Group’s foreign operations are expressed in TL using exchange rates prevailing on the balance sheet
date. Income and expense items are translated at the average exchange rates for the period, unless
exchange rates fluctuate significantly during that period, in which case the exchange rates at the
dates of the transactions are used. Exchange differences arising, if any, are classified as equity and
transferred to the Group’s translation reserve. Such exchange differences are recognized in profit or
loss in the period in which the foreign operation is disposed off.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as
assets and liabilities of the foreign operation and translated at the closing rate.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
24
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Earnings per Share:
Earnings per share disclosed in the accompanying consolidated statement of income is determined
by dividing net income by the weighted average number of shares circulating during the year
concerned.
In Turkey, companies can raise their share capital by distributing “Bonus Shares” to shareholders
from retained earnings. In computing earnings per share, such “bonus share” distributions are
assessed as issued shares. Accordingly, the retrospective effect for those share distributions is taken
into consideration in determining the weighted-average number of shares outstanding used in this
computation.
Subsequent Events:
Events after balance sheet date comprise any event between the balance sheet date and the date of
authorization of the financial statements for publication, even if any event after the balance sheet
date occurred subsequent to an announcement on the Group’s profit or following any financial
information disclosed to public.
The Group restates its financial statements if such adjusting subsequent events arise.
Provisions, Contingent Liabilities, Contingent Assets:
Provisions are recognized when the Group has a present obligation as a result of a past event, and it
is probable that the Group will be required to settle that obligation, and a reliable estimate can be
made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account the risks and uncertainties
surrounding the obligation.
Where a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Onerous Contracts:
Present obligations arising under onerous contracts are measured and recognized as a provision.
An onerous contract is made where the Group has a contract under which the unavoidable costs of
meeting the obligations under the contract exceed the economic benefits expected to be received
under it.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
25
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Segment Information:
The Group has three business segments determined by the management based on information
available for the evaluation of performances and the allocation of resources. These segments are
managed separately because they are affected by the economical conditions and geographical
positions in terms of risks and returns.
Since the Group predominantly operates in Turkey and only in marketable securities sector, segment
information in the accompanying financial statements are configured according to structure of the
Group’s operating entities as securities brokerage, investment trust and portfolio management. Since
the Group’s geographical operations outside of Turkey is not identified as a reportable geographical
segment in the context of materiality of the consolidated financial statements and are not presented
in the accompanying consolidated financial statements (Note 5).
Construction Agreements:
None.
Discontinued Operations:
Discontinued operations are part of a group which either are classified as held-for-sale or have been
disposed of and whose activities and cash flows can be treated separable from the Group’s whole
activities and cash flows. Discontinued operations; represent separate business or geographical
segment, are parts of the plans to sell or dispose thereof, or is a subsidiary acquired for selling. The
Group’s discontinued operations have been valued with the lower of the book values of related asset
and liabilities of the discontinued operations, or fair value less costs to sell.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
26
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Government Incentives and Grants:
Grants from the government are recognized at their fair value where there is a reasonable assurance
that the grant will be received and the group will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the income statement over the
period necessary to match them with the costs that they are intended to compensate.
Government grants relating to property, plant and equipment are included in non-current liabilities
as deferred government grants and are credited to the income statement on a straight-line basis over
the expected lives of the related assets.
Investment Properties:
None.
Taxation and Deferred Tax:
Turkish tax legislation does not permit a parent company and its subsidiaries to file a consolidated
tax return. Therefore, provisions for taxes, as reflected in the accompanying consolidated financial
statements have been calculated on a separate-entity basis.
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current Tax:
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as
reported in the income statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The
Group’s liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.
Deferred Tax:
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases which is used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are
generally recognized for all taxable temporary differences and deferred tax assets are recognized for
all deductible temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized. Such assets and
liabilities are not recognized if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that
affects neither the taxable profit nor the accounting profit.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
27
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Taxation and Deferred Tax (cont’d):
Deferred Tax (cont’d):
Deferred tax liabilities are recognized for taxable temporary differences associated with investments
in subsidiaries and associates, and interests in joint ventures, except where the Group is able to
control the reversal of the temporary difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with such investments and interests are only recognized to the extent that it is
probable that there will be sufficient taxable profits against which to utilize the benefits of the
temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part
of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the balance sheet date. The measurement of deferred
tax liabilities and assets reflects the tax consequences that would follow from the manner in which
the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the
same taxation authority and the Group intends to settle its current tax assets and liabilities on a net
basis.
Current and Deferred Tax for the Period:
Current and deferred tax are recognized as an expense or income in profit or loss, except when they
relate to items that are recognized outside profit or loss (whether in other comprehensive income or
directly in equity), in which case the tax is also recognized outside profit or loss, or where they arise
from the initial accounting for a business combination. In the case of a business combination, the tax
effect is taken into account in calculating goodwill or determining the excess of the acquirer’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities
over cost.
Employee Benefits / Retirement Pay Provision:
Under Turkish law and union agreements, lump sum payments are made to employees retiring or
involuntarily leaving the Group. Such payments are considered as being part of defined retirement
benefit plan as per International Accounting Standard No. 19 (Revised) Employee Benefits (“IAS
19”).
The retirement benefit obligation recognized in the balance sheet represents the present value of the
defined benefit obligation as adjusted for unrecognized actuarial gains and losses.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
28
2. BASIS OF THE FINANCIAL STATEMENTS (cont’d)
2.5. Summary of Significant Accounting Policies (cont’d)
Statement of Cash Flows:
In statement of cash flow, cash flows are classified according to operating, investment and finance
activities.
Cash flows from operating activities reflect cash flows mainly generated from brokerage and
portfolio management operations of the Group. Cash flows from investment activities express cash
used in investment activities (direct investments and financial investments) and cash flows
generated from investment activities of the Group. Cash flows relating to finance activities express
sources of financial activities and payment schedules of the Group.
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly
liquid investments which their maturities are three months or less from date of acquisition and that
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes
in value.
Share Capital and Dividends:
Common shares are classified as equity. Dividends on common shares are reclassified as dividend
payables by netting off from the retained earnings in the period in which they are approved and
disclosed.
2.6 Significant Accounting Estimates
There are no other accounting valuations, estimates or assumptions, which should be separately
disclosed.
3. BUSINESS COMBINATIONS
During the period the Group acquired 0,61% of the shares in nominal capital of its subsidiary, ĠĢ
Yatırım Ortaklığı A.ġ., with an amount of TL 1.015.131 with transactions on the ISE. A favorable
difference between the acquisition cost and the carrying value of the acquired shares amounting to
TL 282.759 is accounted for under the equity as the effect of business combinations of entities under
common control.
4. JOINT VENTURES
None.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
29
5. SEGMENT INFORMATION
Total of
Securities Investment Portfolio Elimination Continued
Segments Brokerage Trust Management adjustments Operations
1 January- 1 January- 1 January- 1 January- 1 January-
31 December 31 December 31 December 31 December 31 December
2009 2009 2009 2009 2009
CONTINUED OPERATIONS
Sales revenue 23.826.132.258 619.649.101 - (120.597) 24.445.660.762
Cost of sales (-) (23.831.118.102) (580.505.045) - - (24.411.623.147)
Interest and derivative income from operating activities (net) 55.186.589 19.709.842 - - 74.896.431
Income from services (net) 67.643.616 - 18.292.999 (3.184.236) 82.752.379
Other operating income / (expenses) (net) 7.268.492 3.330.036 - (342.683) 10.255.845
GROSS PROFIT / (LOSS) 125.112.853 62.183.934 18.292.999 (3.647.516) 201.942.270
Marketing, sales and distribution expenses (-) (13.779.932) (2.735.232) (580.611) 2.520.180 (14.575.595)
General administrative expenses (-) (69.571.066) (968.560) (6.919.603) 710.411 (76.748.818)
Research and development expenses (-) - - - - -
Other operating income 2.777.284 - 19.116 (959.473) 1.836.927
Other operating expenses (-) (4.160.552) (200.407) - 120.597 (4.240.362)
OPERATING PROFIT / (LOSS) 40.378.587 58.279.735 10.811.901 (1.255.801) 108.214.422
Share in net profit / (loss) of investments accounted for under equity method 2.384.040 - - - 2.384.040
(Non-operating) Finance income 14.190.232 487.703 5.418.235 - 20.096.170
(Non-operating) Finance expenses (-) (3.555.051) - (332.941) 342.683 (3.545.309)
PROFIT / (LOSS) BEFORE TAXATION FROM CONTINUED OPERATIONS 53.397.808 58.767.438 15.897.195 (913.118) 127.149.323
Tax benefit / (charge) from continued operations (10.029.813) - (3.190.541) - (13.220.354)
- Current tax benefit / (charge) (9.746.132) - (3.309.455) - (13.055.587)
- Deferred tax benefit / (charge) (283.681) - 118.914 - (164.767)
PROFIT / (LOSS) FOR THE PERIOD FROM CONTINUED OPERATIONS 43.367.995 58.767.438 12.706.654 (913.118) 113.928.969
Attributable to:
Minority interest (775) 41.297.036 3.811.996 322.252 45.430.509
Equity holders of the parent 43.368.770 17.470.402 8.894.658 (1.235.370) 68.498.460
43.367.995 58.767.438 12.706.654 (913.118) 113.928.969
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
30
5. SEGMENT INFORMATION (cont’d)
Total of
Securities Investment Portfolio Elimination continued
Segments Brokerage Trust Management adjustments operations
1 January- 1 January- 1 January- 1 January- 1 January-
31 December 31 December 31 December 31 December 31 December
Other information 2009 2009 2009 2009 2009
Purchases of tangible and intangible fixed assets 4.733.420 1.975 294.245 - 5.029.640
Depreciation and amortization charges (1.957.202) (4.812) (306.883) - (2.268.897)
Securities Investment Portfolio Elimination Consolidated
Segments Brokerage Trust Management adjustments Total
31 December 31 December 31 December 31 December 31 December
Balance sheet information 2009 2009 2009 2009 2009
Assets 2.256.155.593 238.474.375 49.960.465 (90.070.979) 2.454.519.454
Cash and cash equivalents 1.324.709.199 14.842.372 32.273.528 - 1.371.825.099
Financial assets (current) 168.155.141 220.603.953 7.293.962 (1.644.527) 394.408.529
Trade receivables 604.018.453 3.014.373 1.825.243 (16.789.188) 592.068.881
Other receivables 22.689.326 2.099 - 4 22.691.429
Financial assets (non-current) 82.590.038 - 7.260.935 (71.642.608) 18.208.365
Investments accounted for under equity method 37.214.660 - - - 37.214.660
Other assets 16.778.776 11.578 1.306.797 5.340 18.102.491
Liabilities 1.952.481.609 676.138 2.543.093 (16.789.188) 1.938.911.652
Financial liabilities 1.322.793.993 - - - 1.322.793.993
Other financial liabilities 2.557.944 - - - 2.557.944
Trade payables 614.335.592 70.522 317 (16.781.787) 597.624.644
Other payables 5.043.093 7.075 384.698 - 5.434.866
Other liabilities 7.750.987 598.541 2.158.078 (7.401) 10.500.205
Net assets 303.673.984 237.798.237 47.417.372 (73.281.791) 515.607.802
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
31
5. SEGMENT INFORMATION (cont’d)
Total of
Securities Investment Portfolio Elimination continued
Segments Brokerage Trust Management adjustments operations
1 January- 1 January- 1 January- 1 January- 1 January-
31 December 31 December 31 December 31 December 31 December
2008 2008 2008 2008 2008
CONTINUED OPERATIONS
Sales revenue 32.927.544.891 406.707.901 - (17.085) 33.334.235.707
Cost of sales (-) (32.927.612.574) (418.617.864) - - (33.346.230.438)
Interest and derivative income from operating activities (net) 38.684.831 7.662.897 - 46.347.728
Income from services (net) 47.811.528 - 11.732.975 (2.641.059) 56.903.444
Other operating income / (expenses) (net) 11.197.782 1.746.330 (844.331) 12.099.781
GROSS PROFIT / (LOSS) 97.626.458 (2.500.736) 11.732.975 (3.502.475) 103.356.222
Marketing, sales and distribution expenses (-) (22.603.144) (2.794.861) (395.414) 2.569.497 (23.223.922)
General administrative expenses (-) (60.460.819) (1.225.464) (5.680.870) 130.574 (67.236.579)
Research and development expenses (-) - - - - -
Other operating income 13.859.636 - 101.627 (81.817) 13.879.446
Other operating expenses (-) (3.062.449) (2.889.728) - 17.085 (5.935.092)
OPERATING PROFIT / (LOSS) 25.359.682 (9.410.789) 5.758.318 (867.136) 20.840.075
Share in net profit / (loss) of investments accounted for under equity method 4.363.903 - - - 4.363.903
(Non-operating) Finance income 22.232.458 2.321.079 5.214.746 - 29.768.283
(Non-operating) Finance expenses (-) (2.802.259) - (153.832) 844.331 (2.111.760)
PROFIT / (LOSS) BEFORE TAXATION FROM CONTINUED OPERATIONS 49.153.784 (7.089.710) 10.819.232 (22.805) 52.860.501
Tax benefit / (charge) from continued operations (8.789.768) - (2.175.103) - (10.964.871)
- Current tax benefit / (charge) (8.952.822) - (2.170.504) - (11.123.326)
- Deferred tax benefit / (charge) 163.054 - (4.599) - 158.455
PROFIT / (LOSS) FOR THE PERIOD FROM CONTINUED OPERATIONS 40.364.016 (7.089.710) 8.644.129 (22.805) 41.895.630
Attributable to:
Minority interest 105 (5.025.512) 2.593.239 (377.803) (2.809.971)
Equity holders of the parent 40.363.911 (2.064.198) 6.050.890 354.998 44.705.601
40.364.016 (7.089.710) 8.644.129 (22.805) 41.895.630
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
32
5. SEGMENT INFORMATION (cont’d)
Total of
Securities Investment Portfolio Elimination continued
Segments Brokerage Trust Management adjustments Operations
1 January- 1 January- 1 January- 1 January- 1 January-
31 December 31 December 31 December 31 December 31 December
Other information 2008 2008 2008 2008 2008
Purchases of tangible and intangible fixed assets 2.709.964 6.606 395.901 - 3.112.471
Depreciation and amortization charges (1.366.103) (9.491) (211.655) - (1.587.249)
Total of
Securities Investment Portfolio Elimination continued
Segments Brokerage Trust Management adjustments Operations
31 December 31 December 31 December 31 December 31 December
Balance sheet information 2008 2008 2008 2008 2008
Assets 1.353.235.687 179.765.766 35.866.221 (86.028.281) 1.482.839.393
Cash and cash equivalents 898.344.626 8.129.908 26.575.353 - 933.049.887
Financial assets (current) 78.878.430 160.182.575 5.476.343 (522.527) 244.014.821
Trade receivables 238.699.520 11.440.696 2.487.150 (15.067.507) 237.559.859
Other receivables 2.142.880 1.664 - (4.277) 2.140.267
Financial assets (non-current) 80.053.789 - - (70.433.970) 9.619.819
Investments accounted for under equity method 35.802.580 - - - 35.802.580
Other assets 19.313.862 10.923 1.327.375 - 20.652.160
Liabilities 1.085.810.679 734.967 1.435.500 (15.071.784) 1.072.909.362
Financial liabilities 889.267.721 - - - 889.267.721
Other financial liabilities 2.921.747 - - - 2.921.747
Trade payables 181.311.375 348.167 251 (15.067.507) 166.592.286
Other payables 6.490.959 6.422 140.995 - 6.638.376
Other liabilities 5.818.877 380.378 1.294.254 (4.277) 7.489.232
Net assets 267.425.008 179.030.799 34.430.721 (70.956.497) 409.930.031
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
33
6. CASH AND CASH EQUIVALENTS
31 December 31 December
2009 2008
Cash 5.895 19.626
Cash in banks 1.351.935.772 910.277.249
Demand deposits 7.221.597 2.351.658
Time deposits (with maturities three months or less) 1.344.714.175 907.925.591
B type mutual funds 4.261.215 49.937
Reverse repurchase agreements 15.622.217 22.583.027
Receivables from Stock Exchange Money Market - 120.048
1.371.825.099 933.049.887
Maturities and interest rates of time deposits as of 31 December 2009 and 31 December 2008 are
as follows:
31 December 2009
Interest Rate
(%) Maturity
Currency
Type
Amount
(TL)
Time deposits in TL 8,90 - 10,75 04/01/2010 - 12/02/2010 TL 1.337.396.777
Interest accrual 7.317.398
1.344.714.175
31 December 2008
Interest Rate
(%) Maturity
Currency
Type
Amount
(TL)
Time deposits in TL 18,91 - 23,00 02/01/2009 - 31/03/2009 TL 897.939.860
Time deposits in FX 3,00 05/01/2009 US Dollars 3.024.600
Interest accrual 6.961.131
907.925.591
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
34
6. CASH AND CASH EQUIVALENTS (cont’d)
Maturities and interest rates of reverse repurchase agreements as of 31 December 2009 and 31
December 2008 are as follows:
31 December 2009
Interest Rate
(%) Maturity
Cost
Carrying
Value
Reverse repurchase
agreements 5,88 - 6,66 04.01.2010 15.619.444 15.622.217
15.622.217
31 December 2008
Interest Rate
(%) Maturity
Cost
Carrying
Value
Reverse repurchase
agreements 11,99 - 15,00 02/01/2009 22.573.809 22.583.027
22.583.027
Cash and cash equivalents in the Group’s consolidated statement of cash flows for the period
ended 31 December 2009 and 31 December 2008 are presented by netting off interest accruals
from cash and cash equivalents:
31 December 31 December
2009 2008
Cash and cash equivalents 1.371.825.099 933.049.887
Interest accruals (-) (7.320.090) (6.970.348)
1.364.505.009 926.079.539
7. FINANCIAL INVESTMENTS
31 December 31 December
Current financial assets 2009 2008
Financial assets at fair value through profit or loss 380.456.325 236.470.170
Available for sale financial assets 13.952.204 7.544.651
394.408.529 244.014.821
31 December 31 December
Non-current financial assets 2009 2008
Financial assets at fair value through profit or loss - -
Available for sale financial assets - -
Held to maturity financial assets 18.208.365 9.619.819
18.208.365 9.619.819
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
35
7. FINANCIAL INVESTMENTS (cont’d)
31 December 2009
Financial assets at fair value through
profit or loss
Cost
Fair
Value
Carrying
Value
Equity shares 72.714.883 95.850.621 95.850.621
Government bonds and Treasury bills 227.605.516 238.457.153 238.457.153
Foreign currency securities 202.565 206.364 206.364
Private sector bonds 35.316.633 35.282.933 35.282.933
Mutual funds 8.229.513 10.465.287 10.465.287
Income accruals of derivative
instruments - 193.967 193.967
344.069.110 380.456.325 380.456.325
31 December 2008
Financial assets at fair value through
profit or loss
Cost
Fair
Value
Carrying
Value
Equity shares 67.857.678 54.077.043 54.077.043
Government bonds and Treasury bills 106.583.129 113.133.024 113.133.024
Foreign currency securities 1.020.982 929.302 929.302
Private sector bonds 55.519.965 56.696.457 56.696.457
Mutual funds 7.183.428 10.793.542 10.793.542
Income accruals of derivative
instruments - 840.802 840.802
238.165.182 236.470.170 236.470.170
Annual interest rates of Government bonds and Treasury bills held for trading purposes as of 31
December 2009 range between 4,53% and 27,56% (31 December 2008: in-between 15,56% and
22,18%).
Marketable securities given as guarantees as of the respective balance sheet dates are as follows:
31 December 2009
Government bonds and Treasury bills
given as guarantee
Cost
Fair
Value
Carrying
Value
Guarantees given to customers
(For securities lending activities) 21.181 22.379 22.379
ISE Settlement and Custody Bank Inc. 203.489 205.698 205.698
Turkish Derivatives Exchange 12.735 13.715 13.715
Capital Markets Board 115.394 116.413 116.413
TOTAL 352.799 358.205 358.205
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
36
7. FINANCIAL INVESTMENTS (cont’d)
31 December 2008
Government bonds and Treasury bills
given as guarantee
Cost
Fair
Value
Carrying
Value
Guarantees given to customers
(For securities lending activities) 40.729 38.817 38.817
ISE Settlement and Custody Bank Inc. 1.344.388 1.273.150 1.273.150
Turkish Derivatives Exchange 20.000 19.700 19.700
Capital Markets Board 116.000 114.258 114.258
TOTAL 1.521.117 1.445.925 1.445.925
The Group has given securities amounting to TL 3.637.668 (31 December 2008: TL 983.675) as
guarantee against the securities borrowed as of the balance sheet date.
The details of equity investments are as follows:
31 December 2009
Fair Carrying
Financial assets available for sale Cost Value Value
Listed Entities
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. 8.120.045 11.094.322 11.094.322
Unlisted Entities
Yatırım Finansman Menkul Değ. A.ġ. 16.884 16.884 16.884
Turkish Derivatives Exchange 647.435 647.435 647.435
ISE Settlement and Custody Bank Inc. 2.466.090 1.943.563 1.943.563
ISE Emerging Companies Market 250.000 250.000 250.000
11.500.454 13.952.204 13.952.204
31 December 2008
Fair Carrying
Financial assets available for sale Cost Value Value
Listed Entities
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. 8.120.045 4.686.769 4.686.769
Unlisted Entities
Yatırım Finansman Menkul Değ. A.ġ. (7a) 16.884 16.884 16.884
Turkish Derivatives Exchange 647.435 647.435 647.435
ISE Settlement and Custody Bank Inc. 2.466.090 1.943.563 1.943.563
ISE Emerging Companies Market (7a) 250.000 250.000 250.000
11.500.454 7.544.651 7.544.651
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
37
7. FINANCIAL INVESTMENTS (cont’d)
The Group has valued the equity shares of ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. under
securities available for sale having a cost value of TL 8.120.045 (31 December 2008: TL
8.120.045) with the market prices realized on the Istanbul Stock Exchange (“ISE”). As a result of
this valuation, the Group has accounted for the valuation increase amounted to TL 2.974.277 (31
December 2008: valuation decrease of TL 3.433.276) by netting-off the deferred tax liability
amounted to TL 148.714 (31 December 2008: deferred tax asset of TL 171.664) due to this
valuation increase under “Valuation funds / Valuation funds on financial assets” under
shareholders’ equity. The loss amounted to TL 84.242 (31 December 2008: TL 529.119), which
is attributable to minority interest of valuation fund on financial assets, is accounted for under
minority interest in the accompanying financial statements.
The Group has not classified any of its financial assets except financial assets held for trading, as
financial assets at fair value through profit or loss.
Unlisted Financial Assets Carried at Cost:
The above unquoted and unlisted available-for-sale equity investments amounting to TL
2.857.882 (31 December 2008: TL 2.857.882) whose fair value cannot be reliably measured as
the estimated fair value ranges are wide and the probability of estimated values cannot be
reasonably assessed are stated at cost less any impairment loss, if any.
The details of the Group’s Government bonds classified as held to maturity financial assets as of
31 December 2009 and 31 December 2008 are as follows:
31 December 2009
Held to maturity financial assets
Cost
Fair
Value
Carrying
Value
Government bonds 16.781.414 22.355.816 18.208.365
16.781.414 22.355.816 18.208.365
31 December 2008
Held to maturity financial assets
Cost
Fair
Value
Carrying
Value
Government bonds 9.201.373 11.301.392 9.619.819
9.201.373 11.301.392 9.619.819
The maturity of held to maturity financial assets is 15 February 2012 (31 December 2008: 15
February 2012).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
38
8. FINANCIAL LIABILITIES
31 December 31 December
Financial liabilities 2009 2008
Payables to Stock Exchange Money Market 1.128.530.000 883.880.000
Interest accruals (Stock Exchange Money Market) 5.030.248 5.387.721
Short-term borrowings 189.175.652 -
Interest accruals 58.093 -
1.322.793.993 889.267.721
As of 31 December 2009, interest rates and maturities of short-term bank borrowings are as
follows (31 December 2008: None):
31 December 2009
Description Amount
Currency
Type
Interest
Rate (%) Maturity
Amount
TL
Principal 189.175.652 TL 7,00 - 8,00 04/01/2010 189.175.652
Interest accrual 58.093 TL 58.093
189.233.745 189.233.745
As of 31 December 2009, interest rates and maturities of payables to Stock Exchange Money
Market are as follows:
31 December 2009
Description Amount
Currency
Type
Interest
Rate (%) Maturity
Amount
TL
Principal 1.128.530.000 TL 6,50 - 7,50 04/01/2010 - 11/02/2010 1.128.530.000
Interest accrual 5.030.248 TL 5.030.248
1.133.560.248 1.133.560.248
As of 31 December 2008, interest rates and maturities of payables to Stock Exchange Money
Market are as follows:
31 December 2008
Description Amount
Currency
Type
Interest
Rate (%) Maturity
Amount
TL
Principal 883.880.000 TL 14,15 - 17,10 02/01/2009 - 13/02/2009 883.880.000
Interest accrual 5.387.721 TL 5.387.721
889.267.721 889.267.721
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
39
9. OTHER FINANCIAL LIABILITIES
31 December 31 December
2009 2008
Expense accruals on derivative transactions 89.629 2.921.747
Liabilities from short selling transactions 2.468.315 -
2.557.944 2.921.747
10. TRADE RECEIVABLES AND PAYABLES
31 December 31 December
Current trade receivables 2009 2008
Receivables from customers on margin trading 66.026.849 39.081.750
Receivables from customers 335.929.403 80.324.497
Receivables from clearing houses on derivative transactions 118.176.642 84.319.724
Due from related parties (Note 37) 1.636.840 2.468.456
Receivables from clearing houses 53.614.260 10.245.649
Commission and fund management fee receivables 671.017 426.696
Other trade receivables 159.463 170.036
Margin receivables on derivative transactions 15.854.407 20.523.051
592.068.881 237.559.859
As of 31 December 2009 and 31 December 2008, the Group has no trade receivables past due or
impaired.
As of 31 December 2009, the average interest rates applied to customers on margin trading are
8,90% (31 December 2008: 19,08%).
As of 31 December 2009, the Group holds the equity shares of the listed entities as collaterals
received in relation to receivables from customers on margin trading with an amount of TL
145.525.095 (31 December 2008: TL 77.936.167).
As of 31 December 2009, the Group holds letters of guarantee with an amount of TL 10.344.159
(31 December 2008: TL 1.058.610) in relation to the derivative transactions of its customers.
31 December 31 December
Current trade payables 2009 2008
Payables to customers 422.526.930 83.889.149
Payables to clearing houses on derivative transactions 116.041.807 74.853.940
Payables to clearing houses 58.977.155 7.661.515
Due to related parties (Note 37) 7.635 7.621
Other trade payables 71.117 180.061
597.624.644 166.592.286
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
40
11. OTHER RECEIVABLES AND PAYABLES
31 December 31 December
Other receivables 2009 2008
Other current receivables 104.964 118.715
Deposits and guarantees given 22.566.583 1.944.653
Due from related parties (non-trading) (Note 37) 19.882 33.073
Others - 43.826
22.691.429 2.140.267
31 December 31 December
Other payables 2009 2008
Taxes and dues payable 4.934.416 5.797.053
Social security premiums payable 131.753 59.351
Deposits and guarantees received - 24.210
Due to related parties (non-trading) (Note 37) 341.225 695.797
Other sundry payables 27.472 61.965
5.434.866 6.638.376
12. RECEIVABLES AND PAYABLES FROM FINANCIAL SECTOR OPERATIONS
Since the Group operates in finance sector, this account balance has not been used.
13. INVENTORIES
None (31 December 2008: None).
14. BIOLOGICAL ASSETS
None (31 December 2008: None).
15. ASSETS RELATED TO ONGOING CONSTRUCTION CONTRACTS
None (31 December 2008: None).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
41
16. INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD
Financial information of the Group’s investments accounted for equity method is as follows:
31 December 2009 31 December 2008
Share Share
(%) Amount (%) Amount
ĠĢ GiriĢim Sermayesi YO A.ġ. 29,00 37.214.660 29,00 35.802.580
37.214.660 35.802.580
31 December 31 December
2009 2008
Total assets 131.388.884 126.659.044
Total liabilities (2.388.210) (2.535.040)
Minority interest (689.544) (681.535)
Net assets 128.311.130 123.442.469
Group’s share in net assets 37.214.660 35.802.580
Impairment allowance (-) - -
37.214.660 35.802.580
1 January - 1 January -
31 December 31 December
2009 2008
Revenue 8.229.138 26.354.726
Profit for the period 8.225.352 20.085.286
Minority interest in profit for the period (5.502) (252.426)
Net profit for the period attributable to affiliate 8.219.850 19.832.860
Group’s share in profit for the period of affiliate 2.384.040 4.363.903
17. INVESTMENT PROPERTIES
None (31 December 2008: None).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
42
18. TANGIBLE FIXED ASSETS
Acquisition cost
Machinery
and
equipment Vehicles
Furniture
and fixtures
Other
tangible
assets
Leasehold
improvements Total
Opening balance, 1 January 2009 5.216.972 271.853 2.973.285 4.142.750 5.558.284 18.163.144
Exchange differences - - 22.537 - 25.140 47.677
Additions 1.161.062 73.146 505.153 - 2.597.221 4.336.582
Disposals (-) - (41.389) (59.291) - - (100.680)
Closing balance, 31 December 2009 6.378.034 303.610 3.441.684 4.142.750 8.180.645 22.446.723
Accumulated depreciation
Opening balance, 1 January 2009 (3.433.524) (60.671) (1.625.336) (4.130.004) (3.334.636) (12.584.171)
Exchange differences - - (9.592) - (4.828) (14.420)
Charge for the period (615.274) (60.514) (491.556) (3.254) (607.115) (1.777.713)
Disposals (-) - 35.180 44.444 - - 79.624
Closing balance, 31 December 2009 (4.048.798) (86.005) (2.082.040) (4.133.258) (3.946.579) (14.296.680)
Carrying value as of 31 December 2008 1.783.448 211.182 1.347.949 12.746 2.223.648 5.578.973
Carrying value as of 31 December 2009 2.329.236 217.605 1.359.644 9.492 4.234.066 8.150.043
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
43
18. TANGIBLE FIXED ASSETS (cont’d)
Acquisition cost
Machinery
and
equipment Vehicles
Furniture
and fixtures
Other
tangible
assets
Leasehold
improvements Total
Opening balance, 1 January 2008 4.229.264 118.030 2.469.984 4.142.750 4.833.600 15.793.628
Exchange differences - - (13.924) - (17.054) (30.978)
Additions 987.708 230.464 540.280 - 741.738 2.500.190
Disposals (-) - (76.641) (23.055) - - (99.696)
Closing balance, 31 December 2008 5.216.972 271.853 2.973.285 4.142.750 5.558.284 18.163.144
Accumulated depreciation
Opening balance, 1 January 2008 (2.996.003) (77.102) (1.247.828) (4.126.750) (2.906.034) (11.353.717)
Exchange differences - - 2.933 - 1.570 4.503
Charge for the period (437.521) (38.495) (402.633) (3.254) (430.172) (1.312.075)
Disposals (-) - 54.926 22.192 - - 77.118
Closing balance, 31 December 2008 (3.433.524) (60.671) (1.625.336) (4.130.004) (3.334.636) (12.584.171)
Carrying value as of 31 December 2007 1.233.261 40.928 1.222.156 16.000 1.927.566 4.439.911
Carrying value as of 31 December 2008 1.783.448 211.182 1.347.949 12.746 2.223.648 5.578.973
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
44
18. TANGIBLE FIXED ASSETS (cont’d)
Tangible fixed assets acquired through financial leases generally consist of computers, furniture and
various equipments.
Expected useful lives used by the Group are summarized below:
Useful life
Machinery and equipment 3-15 years
Vehicles 5 years
Furniture and fixtures 5-10 years
Leasehold improvements 5-10 years
Other tangible assets 5-10 years
The entire depreciation charges have been charged to the general administrative expenses.
19. INTANGIBLE FIXED ASSETS
Acquisition cost Rights Total
Opening balance, 1 January 2009 2.153.421 2.153.421
Exchange differences 37.527 37.527
Additions 693.058 693.058
Disposals (-) - -
Closing balance, 31 December 2009 2.884.006 2.884.006
Accumulated amortization
Opening balance, 1 January 2009 (852.241) (852.241)
Exchange differences (13.237) (13.237)
Charge for the period (491.184) (491.184)
Disposals (-) - -
Closing balance, 31 December 2009 (1.356.662) (1.356.662)
Carrying value as of 31 December 2008 1.301.180 1.301.180
Carrying value as of 31 December 2009 1.527.344 1.527.344
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
45
19. INTANGIBLE FIXED ASSETS (cont’d)
Acquisition cost Rights Total
Opening balance, 1 January 2008 1.563.592 1.563.592
Exchange differences (22.452) (22.452)
Additions 612.281 612.281
Disposals (-) - -
Closing balance, 31 December 2008 2.153.421 2.153.421
Accumulated amortization
Opening balance, 1 January 2008 (581.325) (581.325)
Exchange differences 4.258 4.258
Charge for the period (275.174) (275.174)
Disposals (-) - -
Closing balance, 31 December 2008 (852.241) (852.241)
Carrying value as of 31 December 2007 982.267 982.267
Carrying value as of 31 December 2008 1.301.180 1.301.180
Amortization of intangible fixed assets is calculated using the straight-line method over their
estimated useful lives (on an average of five years).
The entire amortization charges have been charged to the general administrative expenses.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
46
20. GOODWILL
The positive or negative goodwill showing the difference between the Group’s share in the fair
value of the net assets acquired and the acquisition cost of an investment in the accompanying
consolidated financial statements relating to the acquisitions prior to 1 January 2007, then goodwill
has been amortized using the straight-line method over the estimated useful life before 31 December
2006 by accounting for the amortization of positive goodwill as an expense and the amortization of
negative goodwill as an income in profit and loss. Under IFRS 3 “Business Combinations”,
amortization using the straight-line method for goodwill arising from the acquisitions subsequent to
1 January 2007 is no longer applied and the carrying value of goodwill is reviewed annually for
impairment if there are any indications of impairment and an impairment loss is recognized, if any.
For acquisitions subsequent to the related date, any excess of the Group’s interest in the net fair
value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of the
business combination (known as negative goodwill) is recognized immediately in profit or loss. In
this respect, the negative goodwill amounting to TL 7.850.986 amortized using the straight-line
method over the estimated useful life until 31 December 2006 with a carrying value of TL 6.882.323
after deducting accumulated amortization of TL 968.663 was accounted for in the retained earnings.
The remaining positive goodwill amounting to TL 557.847 and TL 17.411.626 which arose from the
acquisition of ĠĢ Portföy A.ġ. in 2007 are not accounted for under IFRS 3 “Business Combinations”
since the prevailing transactions are referring to business combinations of entities under common
control and total positive goodwill amounting to TL 17.969.473 arose in this context was accounted
for in the retained earnings account under equity as “effect of the business combinations in entities
under common control”.
31 December
2009
31 December
2008
CamiĢ Menkul Değerler A.ġ. 557.847 557.847
ĠĢ Portföy Yönetimi A.ġ. 17.411.626 17.411.626
17.969.473 17.969.473
21. GOVERNMENT INCENTIVES AND GRANTS
None (31 December 2008: None).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
47
22. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES
Current provisions
31 December
2009
31 December
2008
Legal claims (*) 13.335 50.072
Tax penalty provision (**) 515.000 335.323
Other liabilities and expense accruals 971 741
529.306 386.136
(*) The amount represents the provision for certain legal claims brought against the Group by
customers. The provision charge is recognized in profit or loss within general administrative
expenses. The management believes that the outcome of these legal claims will not give rise to
any significant loss beyond the amounts provided at 31 December 2009 after receiving
appropriate legal advice.
(**) Based on the amendments to Article 29/t of Expense Taxes Law numbered 6802 in respect to
Article 32/8 of Law numbered 5838, the effective date of exemption in regards to Banking and
Insurance Transactions Tax (“BITT”) levied on transactions performed in capital markets for
investment trusts is 1 March 2009. In this respect, the subsidiary has provided a BITT provision
amounting to TL 515.000 (31 December 2008: TL 335.323) regarding to 2008 and January –
February 2009 transactions based on the best estimates and accounted for the additional charge
of this provision for the current period amounting to TL 200.407 in the books under other
operating expenses.
1 January - 31 December 2009
Legal
claims
Tax penalty
Provision
Other Total
Opening balance 50.072 335.323 739 386.134
Charge for the period - 200.407 971 201.378
Payments (36.737) (20.730) (739) (58.206)
Closing balance 13.335 515.000 971 529.306
1 January - 31 December 2008
Legal
claims
Tax penalty
Provision
Other Total
Opening balance 49.787 - 622.548 672.335
Provision released - - (283.504) (283.504)
Charge for the period 285 335.323 741 336.349
Payments - - (339.044) (339.044)
Closing balance 50.072 335.323 741 386.136
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
48
22. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
Details of the nominal amounts of Government bonds and Treasury bills, equity shares, Eurobonds
and mutual funds belonging to customers and held for custody purposes are as follows:
31 December
2009
31 December
2008
Government bonds and Treasury bills (customer portfolio) 1.408.451.645 1.394.721.107
Eurobond 272.401.979 198.533.624
Equity shares 3.242.889.472 2.758.251.978
Mutual funds - units 23.701.583.335 9.168.144.017
28.625.326.431 13.519.650.726
As of 31 December 2009 and 31 December 2008, letters of guarantee and promissory notes given by
the Group are as follows:
31 December
2009
31 December
2008
Capital Markets Board 12.828.552 9.728.552
Istanbul Stock Exchange 49.214.050 40.558.920
ISE Settlement and Custody Bank Inc. 1.411.797.054 1.128.283.000
Turkish Derivatives Exchange 6.010.000 6.010.000
Others 5.283.973 4.528.739
1.485.133.629 1.189.109.211
As of 31 December 2009, securities amounting to TL 3.637.668 have been given as guarantees
against securities loaned (31 December 2008: TL 983.675).
The Company and its subsidiaries operating in Turkey with activities in securities brokerage and
portfolio management maintain their capitals in accordance and in compliance with the Capital
Markets Board Communiqué Serial: V, No: 34 “Principles of Capital and Capital Adequacy of
Brokerage Houses” (“Communiqué Serial: V, No: 34”). The Group is in compliance with the
capital adequacy requirements as of 31 December 2009 and 31 December 2008.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
49
22. PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont’d)
Guarantee-Pledge-Mortgage
Guarantee/pledge/mortgage (“GPM”) position of the Group as of 31 December 2009 and 31
December 2008 are as follows:
31 December 31 December
Guarantees/Pledge/Mortgage given by the Company 2009 2008
A. GPM given on behalf of its own legal entity 1.477.997.967 1.186.624.221
GPM 1.474.360.299 1.185.640.546
Financial investments 3.637.668 983.675
B. GPM given on behalf of consolidated subsidiaries 16.463.100 4.536.900
GPM 16.463.100 4.536.900
Financial investments - -
C. Total amount of GPM given on behalf of other third parties'
debt - -
D. Other GPM
i. Total amount of GPM given on behalf of the Parent - -
ii. Total amount of GPM given on behalf of other group
companies not covered in B and C - -
iii. Total amount of GPM given on behalf of third parties
not covered in C - -
TOTAL 1.494.461.067 1.191.161.121
Proportion of other GPM given to the Group’s equity as of 31 December 2009 is 290% (December
31 December 2008: 291%).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
50
23. COMMITMENTS
Derivative commitments and option agreements of the Group as of 31 December 2009 and 31
December 2008 are as follows:
31 December 2009
SHORT POSITION LONG POSITION
Notional Fair Notional Fair
Derivative instrument Notional amount value Notional amount value
description amount Type (TL) (TL) amount Type (TL) (TL)
TL / Foreign currency
Forward agreements 7.700.000 USD 11.593.890 11.700.900
8.300.000 USD 12.497.310 12.584.600
Forward agreements 1.000.000 EUR 2.160.300 2.221.500
2.000.000 EUR 4.320.600 4.386.665
Swap agreements 1.212.501 USD 1.939.890 1.766.814
- - - -
Swap agreements 521.000 EUR 1.125.516 1.125.516
- - - -
Future agreements 5.400.000 USD 8.130.780 8.198.600
4.200.002 USD 6.863.508 6.946.630
Future agreements 1.000.000 EUR 2.160.300 2.221.500
1.000.000 EUR 2.160.300 2.221.500
Option agreements - - - -
1.000.000 USD 1.505.700 1.555.872
Option agreements 312.476 GBP 746.568 725.349
312.476 GBP 746.568 767.787
Index
Future agreements 3.533 TL 21.411.542 23.918.410
2.750 TL 18.422.819 18.617.500
Option agreements - - - -
10 USD 4.984 5.128
Commodities
Option agreements - - - -
500 USD 828.135 797.963
31 December 2008
SHORT POSITION LONG POSITION
Derivative instrument
description
Notional
amount Type
Notional
amount
(TL)
Fair
value
(TL)
Notional
amount Type
Notional
amount
(TL)
Fair
value
(TL)
TL / Foreign currency
Forward agreements 1.900.000 USD 2.873.370 2.984.900 47.736.000 USD 72.191.153 74.993.256
Future agreements 45.836.000 USD 69.317.783 72.008.356 205.000 USD 310.021 322.055
Index
Future agreements 5.000 TL 17.500.925 17.512.500 - - - -
Commodities
Future agreements 72 TL 304.308 312.264 10 USD 444.244 439.022
Stock Swap
Credit default swap 5.000.000 USD 198.111 310.022 5.000.000 USD 68.054 322.120
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
51
24. PROVISIONS RELATED TO EMPLOYEE BENEFITS
Short-term:
31 December
2009
31 December
2008
Provisions related to employee benefits 3.527.260 3.333.735
Long-term:
Under the Turkish Labor Law, the Group is required to pay employment termination benefits to each
entitled employee to receive such benefits. Also, employees who are entitled to a retirement are
required to be paid retirement pay in accordance with Law No: 2422 dated 6 March 1981 and No:
4447 dated 25 August 1999 and the amended Article 60 of the existing Social Insurance Code No:
506. Some transition provisions related to the pre-retirement service term were excluded from the
law since the related law was amended as of 23 May 2002.
The applicable retirement pay provision ceiling as of 31 December 2009 is TL 2.365,16 for the
calculation of employment termination benefits (31 December 2008: TL 2.173,19). The retirement
pay provision ceiling is revised semi-annually, and TL 2.427,16, which is effective from 1 January
2010, is taken into consideration in the calculation of provision for employment termination benefits
(31 December 2008; The retirement pay provision ceiling effective from 1 January 2009 amounts to
TL 2.260,05).
The liability is not funded, as there is no funding requirement. Provision is calculated by estimating
the present value of the future probable obligation of the Group arising from the retirement of the
employees. IAS 19 “Employee Benefits” requires actuarial valuation methods to be developed to
estimate the Group’s obligation under the defined benefit plans. Accordingly, the following actuarial
assumptions are used in the calculation of the total liability:
The principal assumption is that the maximum liability for each year of service will increase parallel
with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the
anticipated effects of future inflation. Consequently, in the accompanying consolidated financial
statements as at 31 December 2009, the provision has been calculated by estimating the present
value of the future probable obligation arising from the retirement of the employees. The provision
at the respective balance sheet date has been calculated assuming an annual inflation rate of 4,80%
(31 December 2008: 5,40%) and a discount rate of 11,00% (31 December 2008: 12,00%), resulting
in a real discount rate of approximately 5,92% (31 December 2008: 6,26%). The anticipated rate of
forfeitures is also considered.
2009 2008
Opening balance, 1 January 1.265.522 1.013.732
Service cost 413.500 270.284
Interest cost 63.974 57.752
Actuarial loss 45.216 -
Retirement payments made (98.034) (76.246)
Closing balance, 31 December 1.690.178 1.265.522
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
52
25. RETIREMENT BENEFITS
Beginning from 2006, the Group has started to contribute certain amount of private pension
payments for its employees. As of 31 December 2009, total contributions paid in current period
amount to TL 155.996 whereas it is TL 445.243 cumulatively (31 December 2008: Current period
contributions paid as of 31 December 2008 is TL 139.480 and cumulative payment is TL 289.247).
26. OTHER ASSETS AND LIABILITIES
Other current assets
31 December
2009
31 December
2008
Prepaid expenses 794.832 952.476
Prepaid taxes and dues 5.922.039 10.035.126
Business advances 88.566 142.822
Personnel advances 434.283 667.712
Others 66.164 -
7.305.884 11.798.136
As of 31 December 2008, the amount of TL 369.506 in other non-current assets represents the long-
term advances given to personnel.
Other current liabilities
31 December
2009
31 December
2008
Expense accruals 3.291.369 1.732.496
Due to personnel 1.977 36.399
Others 25.498 90.501
3.318.844 1.859.396
The amount of TL 46.196 of prepaid expenses in other current assets refers to the services to be
rendered from related parties and the amount of TL 264.950 of expense accruals in other current
liabilities refers to the uninvoiced portion of services rendered from related parties (Note 37).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
53
27. EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
a. Capital / Treasury share adjustment
The capital structure of the Company as of 31 December 2009 and 31 December 2008 are as follows:
31 December 2009 31 December 2008
Share Share
Shareholder (%) Amount (%) Amount
T. ĠĢ Bankası A.ġ. (A Group) 0,13 150.000 0,13 150.000
T. ĠĢ Bankası A.ġ. (B Group) 65,52 78.231.173 65,52 78.231.173
Publicly traded 27,86 33.261.827 27,86 33.261.827
Other 6,49 7.744.000 6,49 7.744.000
Total 100,00 119.387.000 100,00 119.387.000
The capital of the Company is TL 119.387.000 (TL one hundred nineteen million three hundred
eighty seven thousand). The capital consists of 119.387.000 (one hundred nineteen million three
hundred eighty seven thousand) shares of having a nominal value of TL 1 (TL one) each. TL
150.000 of the shares is Group A and TL 119.237.000 is Group B shares. According to the Articles
of Association, additional Group A shares cannot be issued during new capital increases. Five
members of the Board of Directors out of seven are elected among the nominees determined by
Group A shareholders and two members by Group B shareholders.
b. Valuation Funds
31 December
2009
31 December
2008
Valuation fund on financial assets 2.909.805 (2.732.493)
2.909.805 (2.732.493)
Valuation Fund on Financial Assets:
Valuation fund on financial assets arises from the measurement of available-for-sale financial assets
at their fair value. In case of disposal of assets carried at fair value, the cumulative gain or loss
related to that assets previously recognized in equity is included in the profit or loss for the period.
Gains and losses arising from changes in fair value are recognized directly in equity, until the asset
is determined to be impaired, at which time the cumulative gain or loss previously recognized in
equity is included in the profit or loss for the period.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
54
27. EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT (cont’d)
c. Restricted Reserves Appropriated from Profits
31 December
2009
31 December
2008
Legal reserves 8.330.559 5.797.855
Statutory reserves 2.168 2.168
Gains on sale of properties and equity participations to be
transferred to capital
2.452.003 2.060.975
10.784.730 7.860.998
The legal reserves consist of first and second legal reserves, appropriated in accordance with the
Turkish Commercial Code, are not distributable to shareholders. The first legal reserve is
appropriated out of historical statutory profits at the rate of 5% per annum, until the total reserve
reaches 20% of the historical paid-in share capital. The second legal reserve is appropriated after the
first legal reserve and dividends, at the rate of 10% per annum of all cash dividend distributions.
d. Retained Earnings / Accumulated Deficits
The retained earnings and extraordinary reserves disclosed in retained earnings on the consolidated
financial statements of the Group as of 31 December 2009 and 31 December 2008 are as follows:
31 December
2009
31 December
2008
Extraordinary reserves 68.201.166 51.861.153
Extraordinary reserves (arising from consolidated
subsidiaries and affiliates)
9.618.183 9.462.020
Retained earnings / (accumulated deficits) 14.354.756 1.724.997
92.174.105 63.048.170
Profit Distribution:
In accordance with the Capital Markets Board’s (the “CMB”) Decree issued as of 27 January 2010,
in relation to the profit distribution of earnings derived from the operations in 2009, minimum profit
distribution is not required for listed companies (31 December 2008: 20%) and accordingly, profit
distribution should be made based on the requirements set out in the CMB’s Communiqué Serial:
IV, No: 27 “Principles of Advance Dividend Distribution of Companies that are subject to the
Capital Markets Board Regulations”, terms of articles of association and profit distribution policies
publicly disclosed by the companies.
Furthermore, based on the afore-mentioned decree, companies that are required to prepare
consolidated financial statements should calculate their net distributable profits, to the extent that
they can be recovered from equity in their statutory records, by considering the net profit for the
period in the consolidated financial statements which are prepared and disclosed in accordance with
the Communiqué Serial: XI, No: 29.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
55
28. SALES REVENUE AND COST OF SALES
1 January -
31 December
1 January -
31 December
Sales revenue 2009 2008
Sales of equity shares 6.977.145.042 3.973.213.903
Sales of private sector bonds 1.725.778.096 7.329.443.029
Sales of Government bonds 13.187.493.619 21.356.953.448
Sales of Treasury bills 2.341.387.226 203.329.143
Sales of mutual funds 213.856.779 471.296.184
24.445.660.762 33.334.235.707
Cost of sales
Purchases of equity shares (6.964.079.643) (4.030.937.277)
Purchases of private sector bonds (1.723.529.293) (7.402.594.667)
Purchases of Government bonds (13.173.276.676) (21.252.160.853)
Purchases of Treasury bills (2.340.340.006) (205.885.055)
Purchases of mutual funds (210.397.529) (454.652.586)
(24.411.623.147) (33.346.230.438)
Interest and derivative income
from operating activities (net)
Interest income / (expenses) (net) 145.305.071 127.483.424
Derivative income / (expenses) (net) 31.645.096 38.759.912
Interest expenses on bank loans (5.111.100) (1.454.086)
Stock Exchange Money Market interest expenses (96.942.636) (118.441.522)
74.896.431 46.347.728
Service income
Commission income on trading of equity shares 37.671.698 24.102.306
Commission income on trading of Government bonds and Treasury bills 1.556.923 461.783
Commission income on trading of mutual funds 41.117 12.706
Commission income on trading of derivative transactions 18.214.121 13.751.725 Commission income on trading of repurchase agreements and reverse
repurchase agreements 788.346 828.563
Commission income on Stock Exchange Money Market transactions 3.651 12.516
Corporate finance income 1.402.749 2.125.178
Portfolio management fees 23.206.789 15.348.318
Other commissions and income 436.433 436.007
Loaned securities transactions income 698.447 171.961
Deductions from service income
Commission reimbursements to customers (805.214) (65.250)
Commissions paid to agencies (462.681) (282.369)
Service income (net) 82.752.379 56.903.444
Other operating income 4.936.941 3.603.542
Interest income from customers 5.318.904 8.496.239
Other operating income (net) 10.255.845 12.099.781
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
56
29. RESEARCH AND DEVELOPMENT EXPENSES, MARKETING, SALES AND
DISTRIBUTION EXPENSES AND GENERAL ADMINISTRATIVE EXPENSES
1 January -
31 December
1 January -
31 December
2009 2008
Research and development expenses (-) - -
Marketing, sales and distribution expenses (-) (14.575.595) (23.223.922)
General administrative expenses (-) (76.748.818) (67.236.579)
(91.324.413) (90.460.501)
Marketing, sales and distribution expenses (-)
Equity shares transaction and registration fees (1.772.691) (879.614)
Derivative instrument transactions fees (3.755.687) (3.030.463)
Fixed income securities transaction and registration fees (669.606) (500.073)
Custody expenses (2.771.173) (1.867.381)
Foreign marketable securities transaction fees (4.551.938) (16.282.985)
Portfolio management commission expenses (15.430) (66.979)
Marketable securities brokerage commission expenses (97.934) (88.941)
Other marketing, selling and distribution expenses (941.136) (507.486)
(14.575.595) (23.223.922)
1 January -
31 December
1 January -
31 December
General administrative expenses (-) 2009 2008
Personnel expenses (41.916.067) (35.002.050)
Retirement pay provision (522.690) (328.036)
Depreciation and amortization charges (2.268.897) (1.587.249)
Operating expenses (3.561.158) (2.544.518)
Outsourcing expenses (3.491.144) (3.420.223)
Taxes and dues (8.076.680) (10.223.044)
Other general administrative expenses (672.773) (1.526.535)
Communication expenses (7.076.067) (4.933.833)
Publication and advertisement expenses (2.221.449) (2.198.946)
Rent expenses (4.560.781) (3.202.123)
Transportation expenses (1.216.512) (1.127.572)
Board of Directors attendance fees (1.164.600) (1.142.450)
(76.748.818) (67.236.579)
Total operating expenses (91.324.413) (90.460.501)
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
57
30. EXPENSES BY NATURE
1 January -
31 December
1 January -
31 December
2009 2008
Personnel expenses (41.916.067) (35.002.050)
Depreciation and amortization charges (2.268.897) (1.587.249)
Rent expenses (4.560.781) (3.202.123)
Outsourcing expenses (3.491.144) (3.420.223)
Marketing, sales and distribution expenses (14.575.595) (23.223.922)
Transportation expenses (1.216.512) (1.127.572)
Operating expenses (3.561.158) (2.544.518)
Communication expenses (7.076.067) (4.933.833)
Publication and advertisement expenses (2.221.449) (2.198.946)
Taxes and dues (8.076.680) (10.223.044)
Retirement pay provision (522.690) (328.036)
Board of Directors attendance fees (1.164.600) (1.142.450)
Other (672.773) (1.526.535)
(91.324.413) (90.460.501)
31. OTHER OPERATING INCOME / (EXPENSES)
1 January -
31 December
1 January -
31 December
Other operating income 2009 2008
Gain on sales of tangible fixed assets 6.378 17.949
Dividend income from affiliates 700.385 366.417
Negative goodwill recognized in profit/(loss) - 11.781.149
Others 1.130.164 1.713.931
1.836.927 13.879.446
1 January -
31 December
1 January -
31 December
Other operating expenses 2009 2008
Impairment of tangible fixed assets (7.716) (863)
Loaned marketable securities commission expenses (3.082.621) (2.006.389)
Others (1.150.025) (3.927.840)
(4.240.362) (5.935.092)
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
58
32. FINANCE INCOME (NON-OPERATING)
1 January -
31 December
1 January -
31 December
2009 2008
Interest income on 17.324.349 14.332.664
Government bonds and Treasury bills 4.002.156 2.475.980
Private sector, notes and bills 8.451.010 6.534.138
Foreign marketable securities 976.732 663.261
Equity shares - 3.849
Time deposits 3.894.451 4.655.436
Reverse repo interest income 487.784 2.456.145
Derivatives exchange market transactions - 864
Interest income on guarantees 1.451.865 10.339.254
Foreign currency gains 311.507 2.584.708
Other finance income 520.665 54.648
20.096.170 29.768.283
33. FINANCE EXPENSES (NON-OPERATING)
1 January -
31 December
1 January -
31 December
2009 2008
Interest expenses on - (2.718)
Bank loans - (2.718)
Commission expenses on letters of guarantee (3.084.315) (1.876.346)
Foreign currency losses (50.630) (47.104)
Repurchase agreements interest expenses (282.311) -
Other finance expenses (128.053) (185.592)
(3.545.309) (2.111.760)
34. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS
None (31 December 2008: None).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
59
35. TAX ASSETS AND LIABILITIES
31 December 31 December
Current tax payable 2009 2008
Current tax liability 13.075.847 11.123.326
Less: Advance taxes (11.641.230) (10.478.883)
1.434.617 644.443
1 January -
31 December
1 January -
31 December
Tax charge in the statement of income 2009 2008
Current tax liability (13.075.847) (11.123.326)
Deferred tax benefit / (charge) (164.767) 158.455
Reversal of over accrual of prior period taxes 20.260 -
Total Tax Benefit / (Charge) (13.220.354) (10.964.871)
Tax charge from continued operations (13.220.354) (10.964.871)
Tax charge from discontinued operations - -
(13.220.354) (10.964.871)
1 January -
31 December
1 January -
31 December
Deferred taxes accounted for under equity 2009 2008
On valuation of available-for-sale financial assets 320.378 (345.714)
Corporate Tax:
The Group is subject to Turkish corporate taxes. Tax legislation in Turkey does not permit a parent
company and its subsidiaries to file a consolidated tax return. Therefore, provisions for taxes, as reflected
in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.
Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting
profit by adding back non-deductible expenses, and by deducting dividends received from resident
companies, other exempt income and investment incentives utilized.
The effective tax rate in 2009 is 20% (2008: 20%).
In Turkey, advance tax returns are filed on a quarterly basis. The advance corporate income tax rate was
20% for 2009 (2008: 20%).
Losses can be carried forward for offset against future taxable income for up to 5 years. Losses cannot be
carried back for offset against profits from previous periods.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
60
35. TAX ASSETS AND LIABILITIES (cont’d)
Corporate Tax (cont’d):
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file
their tax returns between 1 - 25 April following the close of the accounting year to which they relate.
Companies with special accounting periods file their tax returns between 1st and 25th days of fourth
month after the fiscal year end. Tax authorities may, however, examine such returns and the underlying
accounting records and may revise assessments within five years.
Income Withholding Tax:
In addition to corporate taxes, companies should also calculate income withholding taxes on any
dividends distributed, except for companies receiving dividends who are resident companies in Turkey
and Turkish branches of foreign companies. The rate of income withholding tax is 10% starting from 24
April 2003. This rate was increased from 10% to 15% effective from 23 July 2006. Undistributed
dividends incorporated in share capital are not subject to income withholding taxes.
Withholding tax at the rate of 19,8% is still applied to investment allowances relating to investment
incentive certificates obtained prior to 24 April 2003. Subsequent to this date, companies can deduct 40%
of the investments within the scope of the investment incentive certificate that are directly related to
production facilities. Investments without investment incentive certificates do not qualify for tax
allowance.
Investment Incentive Certificates:
Investment incentive certificates are revoked commencing from 1 January 2006. If companies cannot use
investment incentive due to inadequate profit, such outstanding investment incentive can be carried
forward to the following years as of 31 December 2005 so as to be deducted from taxable income of
subsequent profitable years. However, companies can deduct their carried forward outstanding allowance
from 2006, 2007 and 2008’s taxable income. The investment incentive amount that cannot be deducted
from 2008’s taxable income will not be carried forward to the following years.
Upon the resolution made by the Constitutional Court on 15 October 2009, the legal arrangement, which
proposes to eliminate the vested rights, was revoked on the basis of being contradictory to the
constitution. Deadline of the investment incentive period is, thereby, ceased as of the reporting date. The
related resolution was published in the Official Gazette on 8 January 2010.
Taxation for Investment Trusts:
In accordance with the Clause (1) (d) in Article 5 of the Corporate Tax Law No: 5520 and dated 21 June
2006 in effect from 1 January 2006, portfolio management income of the securities investment funds and
trusts in Turkey is exempt from tax. This exemption is also applied to the advance corporate tax.
Based on the Clause (3) in Article 15 of the same law, 15% withholding tax is applied on the portfolio
management income of the securities investment funds and trusts in Turkey, which is exempt from tax,
whether it is distributed or not. In accordance with the Clause (4) of the same article, the Council of
Ministers is authorized to reduce this withholding rate to 0% or to increase it up to the corporate tax rate
and differentiate the related withholding rate according to the fund and trust types or the nature and
composition of the assets in their portfolio within the related limits.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
61
35. TAX ASSETS AND LIABILITIES (cont’d)
Taxation for Investment Trusts (cont’d):
In accordance with the Law No: 5527 and the Provisional Article 67 the Clause (1) which were
introduced in the Income Tax Law No: 193 with the Law No: 5281 to be applied from 1 January 2006 to
31 December 2015 effective from 1 January 2006, 15%, 10% and 0% withholding tax is applied for
securities investment funds’ and trusts’ purchase and sale income from securities and other capital
market instruments and periodical returns through banks and brokerage companies for the periods of 1
January 2006 - 22 July 2006, 23 July 2006 - 30 September 2006 and subsequent to 1 October 2006,
respectively.
As per the Clause (8) of the Provisional Article 67, 15% withholding tax is applied on the securities
investment funds established in accordance with the Capital Markets Law (including funds traded on
stock exchange, mortgage finance funds and asset finance funds) and securities investment trusts’
portfolio income that is exempt from corporate tax, whether distributed or not. There is no further
withholding tax for the related income under the Article 94. Upon the decision made by the Council of
Ministers numbered 2006/10731 and dated 22 July 2006, the related withholding tax rate was applied as
10% for the period 23 July 2006 - 30 September 2006 and 0% subsequent to 1 October 2006.
Deferred Tax: The Group recognizes deferred tax assets and liabilities based upon the temporary differences between
its financial statements as reported in accordance with IFRS and its statutory tax financial statements.
These differences usually result in the recognition of revenue and expenses in different reporting periods
for IFRS and tax purposes and they are given below.
20% of tax is applied in the calculation of deferred tax assets and liabilities (2008: 20%).
Since companies in Turkey cannot file a consolidated tax return, subsidiaries having deferred tax assets
cannot be offset against subsidiaries having deferred tax liabilities and the net deferred tax position of each
entity is disclosed separately.
31 December 31 December
2009 2008
Deferred tax assets (-) (1.119.220) (1.604.365)
Deferred tax liabilities - -
Deferred tax liabilities / (assets) (net) (1.119.220) (1.604.365)
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
62
35. TAX ASSETS AND LIABILITIES (cont’d)
Deferred Tax (cont’d):
31 December 31 December
Temporary differences subject to deferred tax 2009 2008
Useful life differences on tangible and intangible fixed assets 1.894.700 1.308.120
Retirement pay provision (*) (1.639.137) (1.226.737)
Valuation of marketable securities (2.040.031) (1.600.893)
Income / (expense) accruals on derivative transactions (net) 103.542 (1.161.445)
Valuation fund on financial assets 2.974.277 (3.433.276)
Subsidiary valuation differences (5.523.355) (5.523.355)
Accrued expenses (3.494.763) (3.306.735)
(7.724.767) (14.944.321)
Deferred tax (assets) / liabilities
Useful life differences on tangible and intangible fixed
assets 378.940
261.624
Retirement pay provision (*) (327.827) (245.348)
Valuation of marketable securities (408.006) (320.179)
Income / (expense) accruals on derivative transactions (net) 20.708 (232.289)
Valuation fund on financial assets 148.714 (171.664)
Subsidiary valuation differences (276.168) (276.168)
Accrued expenses (698.953) (661.347)
(1.162.592) (1.645.371)
Valuation allowance (**) 43.372 41.006
(1.119.220) (1.604.365)
Movement of deferred tax (assets) / liabilities 2009 2008
Opening balance, 1 January (1.604.365) (1.100.196)
Deferred tax (benefit) / charge (**) 121.395 (199.461)
Deferred tax offset from valuation fund on financial assets 320.378 (345.714)
Deferred tax asset allowance 43.372 41.006
Closing balance, 31 December (1.119.220) (1.604.365)
(*) Since ĠĢ Yatırım Ortaklığı A.ġ. is exempt from taxation, retirement pay provision amounting to TL 51.041 is not considered
in deferred tax calculation (31 December 2008: TL 38.785).
(**) Tax legislation in Turkey does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore,
provisions for taxes, as reflected in the accompanying consolidated financial statements, are calculated on a separate-entity
basis. Deferred tax assets are recognized when it is probable that the tax benefit will be utilized in the future. Deferred tax
asset is written off to the extent that it could not be realized. In this respect, allowance is made for the deferred tax asset
calculated by CamiĢ Menkul Değerler A.ġ. amounting to TL 43.372 in the accompanying consolidated financial statements
(31 December 2008: TL 41.006).
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
63
35. TAX ASSETS AND LIABILITIES (cont’d)
Total tax charge for the period can be reconciled to the accounting profit as follows:
1 January -
31 December
1 January -
31 December
Reconciliation of tax provision 2009 2008
Profit before tax 127.149.323 52.860.501
(Profit) / loss of the subsidiary exempt from tax (58.767.438) 7.089.710
Taxable profit 68.381.885 59.950.211
Calculated tax (2009: 20%, 2008: 20%) (13.676.377) (11.990.042)
Effects of undeductible expenses (129.063) (204.496)
Dividend and other tax exempt income / expenses 237.600 776.264
Effect of carry forward tax losses (137.848) (496.535)
Effect of share in net profit / (loss) of investments accounted
for under equity method 476.808 872.781
Others 8.526 77.157
Tax benefit / (charge) (13.220.354) (10.964.871)
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
64
36. EARNINGS PER SHARE
As of 31 December 2009 and 31 December 2008, the Company’s weighted average number of
shares and computation of (loss) / earnings per share is as follows:
1 January -
31 December
1 January -
31 December
Earnings per share 2009 2008
Average number of shares in circulation
throughout the period (total) 119.387.000 119.387.000
Profit / (loss) for the period attributable to equity
holders of the parent
68.498.460 44.705.601
Earnings / (losses) per share from
continued and discontinued operations 0,5738 0,3745
Net profit / (loss) for the period attributable to equity
holders of the parent 68.498.460 44.705.601
Less: Net profit / (loss) for the period from
discontinued operations - -
Net profit / (loss) for the period
from continued operations 68.498.460 44.705.601
Net profit / (loss) for the period
from continued operations 68.498.460 44.705.601
Net profit / (loss) for the period
from discontinued operations - -
Diluted earnings / (losses) per share 0,5738 0,3745
Earnings / (losses) per share from continued
operations 0,5738 0,3745
Earnings per share from discontinued operations - -
Total Comprehensive Income 120.022.932 35.310.17
Total comprehensive income attributable to equity
holders of the parent 74.147.546 38.593.124
Earnings per share from total comprehensive income 0,6211 0,3233
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
65
37. RELATED PARTY TRANSACTIONS
The immediate parent and ultimate controlling party of the Group is Türkiye ĠĢ Bankası A.ġ. incorporated
in Turkey. Transactions between the Company and its subsidiaries, which are the related parties of the
Company, have been eliminated on consolidation and are not disclosed in this note. The details of
transactions between the Group and other related parties are disclosed below.
31 December 31 December
Bank balances with ĠĢ Bankası 2009 2008
Demand deposits 1.452.297 130.413
Time deposits 203.094.055 208.384.000
204.546.352 208.514.413
31 December 31 December
Borrowings from ĠĢ Bankası 2009 2008
Loans 4.715.767 -
4.715.767 -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
66
37. RELATED PARTY TRANSACTIONS (cont’d)
31 December 2009
Receivables Payables
Current Non-current Current Non-current
Due from / to related parties Trading
Non-
trading Trading
Non-
trading Trading
Non-
trading Trading
Non-
trading
ĠĢ Merkezleri Yönetim ve ĠĢletim A.ġ.(*) 4.129 2.603 - - - 246.961 - -
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ. 1.475 - - - - - - -
T. ĠĢ Bankası A.ġ. (*) 266.249 - - - - 46.145 - -
T. ĠĢ Bankası A.ġ. (Foreign Mutual Funds) 111.355 - - - - - - -
Turkish Derivatives Exchange (*) - - - - - 251.303 - -
ĠĢ Net Elektronik Bilgi Üretim A.ġ. - - - - - 7.580 - -
Probil Bilgi ĠĢlem Destek DanıĢmanlık A.ġ. - - - - - 13.209 - -
T. ġiĢe ve Cam Fabrikaları A.ġ. - - - - 7.318 - - -
Anadolu Anonim Türk Sigorta ġirketi (*) 249.195 42.858 - - 317 36.621 - -
Anadolu Hayat Emeklilik A.ġ. 777.512 - - - - - - -
Milli Reasürans T.A.ġ. 182.509 - - - - - - -
ġiĢecam Sigorta ve Aracılık Hizmetleri A.ġ. - - - - - 2.204 - -
Türkiye ĠĢ Bankası A.ġ. Mensupları Emekli Sandığı
Vakfı 2.703 - - - - - - -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. (*) 41.267 3.338 - - - - - -
ĠĢ Bankası (Commissions from Mutual Funds) 423 - - - - - - -
Receivables from employees - - - - - 221 - -
Others 23 17.279 - - - 1.931 - -
1.636.840 66.078 - - 7.635 606.175 - -
(*) The amount of TL 46.196 of non-trading receivables from related parties refers to prepaid expenses presented in other current assets in Note 26.
The amount of TL 264.950 of non-trading payables to related parties refers to expense accruals presented in other current liabilities in Note 26.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
67
37. RELATED PARTY TRANSACTIONS (cont’d)
1 January - 31 December 2009
Related party transactions (revenues)
Fee and brokerage
commission income
Interest income on
time deposits
Dividends
received
T. ĠĢ Bankası A.ġ. 24.738.407 20.468.075 -
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ. 241.318 - 977.528
MiltaĢ Sigorta Aracılığı A.ġ. 12 - -
MiltaĢ Turizm ĠnĢaat Ticaret A.ġ. 313 - -
T. ġiĢe ve Cam Fabrikaları A.ġ. 42.589 - -
Milli Reasürans T.A.ġ. 579.212 - -
Yatırım Finansman Menkul Değerler A.ġ. 6.059 - -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. 92.777 - 246.058
Anadolu Cam Sanayi A.ġ. 52.800 - -
Trakya Cam Sanayi A.ġ. 52.800 - -
Soda Sanayi A.ġ. 13.500 - -
Anadolu Hayat Emeklilik A.ġ. 7.572.936 - -
Anadolu Anonim Türk Sigorta ġirketi 760.736 - -
ISE Settlement and Custody Bank Inc - - 272.067
Turkish Derivatives Exchange - - 182.259
T. ĠĢ Bankası A.ġ. (Foreign Mutual Funds) 412.949 - -
Others 2.183 - -
34.568.591 20.468.075 1.677.912
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
68
37. RELATED PARTY TRANSACTIONS (cont’d)
1 January - 31 December 2009
Related party transactions (expenses)
Letters of
guarantee
commission
expenses
Custody
commission
expenses
Interest on
borrowings
Finance
lease
interest
expenses
Banking
transaction
commission
expenses
Personnel
health
insurance
contributions
Office
insurance
expenses
Rent
expenses
Administrative
expenses
Service
expenses
Dividends
paid
T. ĠĢ Bankası A.ġ. 37.618
37.734
161.688
-
533.528
-
-
-
91.772
- -
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ. -
-
-
-
4.577
-
-
-
-
- -
ĠĢ Finansal Kiralama A.ġ. -
-
-
772
-
-
-
-
-
- -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. -
-
-
-
-
-
43.729
2.591.200
3.020
- -
Anadolu Anonim Türk Sigorta ġirketi -
-
-
-
-
519.431
59.696
-
60.638
- -
Anadolu Hayat Emeklilik A.ġ. -
-
-
-
-
14.421
-
-
37.694
- 260.891
ĠĢ Merkezleri Yönetim ve ĠĢletim A.ġ. -
-
-
-
-
-
-
-
1.653.671
- -
T. ġiĢe ve Cam Fabrikaları A.ġ. -
28.201
-
-
-
-
-
-
6.184
38.665 -
TT&TĠM ĠletiĢim Hizmetleri A.ġ. -
-
-
-
-
-
-
-
4.715
- -
ĠĢ Net Elektronik Hizmetler A.ġ. -
-
-
-
-
-
-
-
-
116.538 -
Elektronik Bilgi Üretim Dağıtım Ticaret ve ĠletiĢim Hizmetleri A.ġ -
-
-
-
-
-
-
-
-
4.248 -
Anadolu Cam Sanayi A.ġ. -
1.393
-
-
-
-
-
-
-
- -
Trakya Cam Sanayi A.ġ. -
443
-
-
-
-
-
-
-
- -
CamiĢ Madencilik A.ġ. -
455
-
-
-
-
-
-
-
- -
CamiĢ Yatırım Holding A.ġ. -
-
-
-
-
-
-
-
-
- 1.304
Türkiye Sınaî Kalkınma Bankası A.ġ -
-
-
-
-
-
-
-
-
- 65.223
Probil Bilgi ĠĢlem Destek DanıĢmanlık A.ġ. -
-
-
-
-
-
-
-
-
37.263 -
ISE Settlement and Custody Bank Inc -
1.137.427
-
-
930.337
-
-
-
-
- -
Yatırım Finansman A.ġ. -
-
-
-
-
-
-
-
-
- 63.918
Türkiye ĠĢ Bankası A.ġ. Mensupları Emekli Sandığı Vakfı -
-
-
-
-
-
-
222.084
-
- -
Turkish Derivatives Exchange -
-
-
-
3.765.137
-
-
-
-
- -
37.618
1.205.653
161.688
772
5.233.579
533.852
103.425
2.813.284
1.857.694
196.714 391.336
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
69
37. RELATED PARTY TRANSACTIONS (cont’d)
31 December 2008
Receivables Payables
Current Non-current Current Non-current
Due from / to related parties Trading
Non-
trading Trading
Non-
trading Trading
Non-
trading Trading
Non-
trading
ĠĢ Merkezleri Yönetim ve ĠĢletim A.ġ. 550 1.664 - - - 251.604 - -
T. ĠĢ Bankası A.ġ. (Foreign Mutual Funds) 108.929 41 - - - 37.230 - -
ĠĢ GiriĢim Sermayesi Yatırım Ortaklığı A.ġ. - - - - - - - -
Anadolu Anonim Türk Sigorta ġirketi 88.079 25.447 - - - 399.343 - -
Milli Reasürans T.A.ġ. 252.696 - - - - - - -
T. ĠĢ Bankası A.ġ. 1.459.987 - - - 7.621 - - -
PaĢabahçe Cam San. ve Tic. A.ġ. - - - - - - - -
Elektronik Bilgi Üretim Dağıtım
Ticaret ve ĠletiĢim Hizmetleri A.ġ. - 477 - - - - - -
ġiĢecam Sigorta ve Aracılık Hizmetleri A.ġ. - 1.525 - - - 803 - -
T. ġiĢe ve Cam Fabrikaları A.ġ. - - - - - 2.423 - -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. 4.712 3.919 - - - - - -
ĠĢ Net Elektronik Bilgi Üretim A.ġ. - - - - - 4.077 - -
Trakya Cam Sanayi A.ġ. - - - - - - - -
ĠĢ Bankası (Commissions from Mutual Funds) - - - - - - - -
ĠĢ Finansal Kiralama A.ġ - - - - - 185 - -
Others 553.503 - - - - 132 - -
2.468.456 33.073 - - 7.621 695.797 - -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
70
37. RELATED PARTY TRANSACTIONS (cont’d)
1 January - 31 December 2008
Related party transactions (revenues)
Fee and brokerage
commission income
Interest income
on time deposits
Dividends
received
Gain on sale of
subsidiaries
Technical
assistance income
T. ĠĢ Bankası A.ġ. 12.711.641 29.223.390 30 - 372.738
ĠĢ Net Elektronik Bilgi Üretim A.ġ. 7 - - - -
Milli Reasürans T.A.ġ. 532.861 - - - -
T. ġiĢe ve Cam Fabrikaları A.ġ. 12.000 - - - -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. 43.559 - 257.720 - -
Yatırım Finans Menkul Değerler A.ġ. 285 - - - -
Efes Holding A.ġ. 9 - - - -
Anadolu Hayat Emeklilik A.ġ. 4.980.675 - - - -
Anadolu Anonim Türk Sigorta ġirketi 366.911 - - - -
T. ĠĢ Bankası A.ġ. Mensupları Emekli San. Vakfı 5.033 - - - -
PaĢabahçe Cam San ve Tic. A.ġ. 60.910 - - - -
T. ĠĢ Bankası A.ġ. (Foreign Mutual Funds) 482.974 - - - -
Anadolu Cam Sanayi A.ġ. 32.000 - - - -
Trakya Cam Sanayi A.ġ. 32.000 - - - -
Soda Sanayi A.ġ. 12.000 - - - -
Turkish Derivatives Exchange 3.674 - 28.340 - -
Others 24 - - - -
19.276.563 29.223.390 286.090 - 372.738
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
71
37. RELATED PARTY TRANSACTIONS (cont’d)
1 January - 31 December 2008
Related party transactions (expenses)
Letters of
guarantee
commission
expenses
Custody
commission
expenses
Interest
expense on
borrowings
Finance
lease
interest
expenses
Banking
transaction
commission
expenses
Personnel
health
insurance
contributions
Office
insurance
expenses
Rent
expenses
Administrative
expenses
Service
expenses
T. ĠĢ Bankası A.ġ. 16.639 36.698 54.350 - 230.042 12.475 8.384 155.757 71.190 -
ĠĢ Finansal Kiralama A.ġ. - - - 3.325 - - - - - -
ĠĢ Gayrimenkul Yatırım Ortaklığı A.ġ. - - - - - - 51.346 2.063.440 14.186 -
Anadolu Anonim Türk Sigorta ġirketi - - - - - 644.748 33.652 - - -
ĠĢ Merkezleri Yönetim ve ĠĢletim A.ġ. - - - - - - - - 1.436.696 -
ĠĢ Net Elektronik Hizmetler A.ġ. - - - - - - - - 27.979 13.684
Probil Bilgi ĠĢlem Destek DanıĢmanlık A.ġ. - - - - - - - - 34.215 -
T. ġiĢe ve Cam Fabrikaları A.ġ. - - - - - - - - 29.703 -
Anadolu Hayat Emeklilik A.ġ. - - - - - - - - - -
Beyaz Oto Kiralama A.ġ - - - - - - - 66.495 - -
Others - - - - 2.095.583 - - - 66.869 -
16.639 36.698 54.350 3.325 2.325.625 657.223 93.382 2.285.692 1.680.838 13.684
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
72
37. RELATED PARTY TRANSACTIONS (cont’d)
1 January - 1 January -
31 December 31 December
Compensation of key management personnel 2009 2008
Salaries and other short-term benefits 5.637.663 4.918.141
5.637.663 4.918.141
Key management personnel consist of 45 people; members of Board of Directors (26), members of
audit committee (8), assistant general managers (8), and general managers (3).
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS
Capital Risk Management:
In its capital management, while the Group maintains to continue its operations on a going concern
basis, it also maximizes its return through the optimization of the debt and equity balance.
The funding structure of the Group consists of debt, which includes the borrowings disclosed in
Note 8, cash and cash equivalents and equity comprising issued capital, reserves and retained
earnings.
The Group’s Board of Directors reviews the capital structure on a monthly basis. As part of this
review, the Board considers the cost of capital and the risks associated with each class of equity.
Based on the recommendations of the Board of Directors, the Group balances its overall capital
structure through the payment of dividends, new share issues and investment in shares of associates
and subsidiaries as well as issuance of a new debt or the redemption of an existing debt.
The Group continues its general capital risk management strategy since 2007.
Financial Risk Factors:
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk,
fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.
The Group’s overall risk management program focuses on the uncertainty of financial markets and
seeks to minimize the potential negative effects on the Group’s financial performance. The Group
uses derivative financial instruments to hedge certain risk exposures.
Risk management is carried out by the Risk Management Department, which is independent from
steering, under policies approved by the Board of Directors. The Group’s Risk Management
Department identifies, evaluates and hedges financial risks in close co-operation with the Group’s
operating units. The Board sets out written principles for overall risk management, as well as written
policies covering specific areas, such as; foreign exchange risk, interest rate risk, credit risk, use of
derivative financial instruments and non-derivative financial instruments, and investment of excess
liquidity.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
73
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Credit risk management
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in
financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the
risk of financial loss from defaults. Credit risk is mitigated by receiving equity shares of listed
entities as collateral in accordance with the legal requirements of the CMB against credit lines
utilized by customers. The Group’s credit risk is predominantly in Turkey, where it operates.
Interest rate risk management
The Group is exposed to interest rate risk due to volatile market prices of its financial assets at both
fixed and floating interest rates. The Group’s exposure to interest rate risk sensitivity depends on the
mismatch among maturities of interest rate sensitive assets and liabilities. The risk is managed by
the Group by maintaining an appropriate mix between fixed and floating rate assets and liabilities.
Group’s interest rate sensitive financial instruments’ allocations on respective balance sheet dates
are presented below.
31 December 2009
Floating
interest
Fixed
interest
Non-interest
bearing Total Financial assets
Cash and cash equivalents 4.261.215 1.360.336.392 7.227.492 1.371.825.099
Financial investments at fair value
through profit and loss 51.418.183 223.869.335 105.168.807 380.456.325
Available for sale investments - - 13.952.204 13.952.204
Held to maturity financial assets 18.208.365 - - 18.208.365
Trade receivables (*) 81.881.256 - 510.187.625 592.068.881
Financial liabilities
Financial payables 980.000 1.321.813.993 - 1.322.793.993
Other financial payables 89.629 - 2.468.315 2.557.944
Trade payables (*) - - 597.624.644 597.624.644
(*) Since the balance regarding to “Receivables from clearing houses on derivative transactions” presented in
trade receivables of assets of the consolidated balance sheet is netted off by “Payables to clearing houses
on derivative transactions” presented in trade payables of liabilities, the balances related to these items are
presented as “Non-interest bearing” financial assets and financial liabilities in the table above.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
74
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Interest rate risk management (cont’d)
31 December 2008
Floating
interest
Fixed
interest
Non-interest
bearing Total Financial assets
Cash and cash equivalents 49.937 930.628.666 2.371.284 933.049.887
Financial investments at fair value
through profit and loss 65.069.966 109.217.693 62.182.511 236.470.170
Available for sale investments - - 7.544.651 7.544.651
Held to maturity financial assets 9.619.819 - - 9.619.819
Trade receivables(*) 59.604.801 - 177.955.058 237.559.859
Financial liabilities
Financial payables - 889.267.721 - 889.267.721
Other financial payables 2.921.747 - - 2.921.747
Trade payables(*) - - 166.592.286 166.592.286
The Group’s exposure to interest rate risk and market price risk are related to fixed income financial
assets classified as financial assets at fair value through profit or loss. Based on the analysis
calculated by the Group, if the interest rate for TL were increased / decreased by 1% with the
assumption of keeping all other variables constant, the effect on the fair value of fixed income
financial assets and net profit / loss for the period ended as at 31 December 2009 and 31 December
2008 would be as follows:
31 December 2009
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Interest rate risk 1% Increase (664.176) -
Decrease 752.261 -
31 December 2008
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Interest rate risk 1% Increase (683.476) -
Decrease 646.663 -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
75
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Market risk management
If the Istanbul Stock Exchange Index were increased / decreased by 10% with the assumption of
keeping all other variables constant, the effect on the fair value of equity shares and net profit / loss
of the Group for the period ended as at 31 December 2009 and 31 December 2008 would be as
follows:
31 December 2009
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Market risk 10% Increase 7.876.241 569.217
Decrease (7.786.241) (569.217)
31 December 2008
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Market risk 10% Increase 6.124.031 362.999
Decrease (6.124.031) (362.999)
Liquidity risk management
Liquidity risk is the Group’s default in meeting its net funding liabilities. Events causing a decrease
in funding resources such as; market deteriorations or decrease in credit ratings are major reasons of
liquidity risk. The Group manages its liquidity risk by maintaining adequate reserves, banking
facilities and reserve borrowing facilities through a constant monitoring forecast and actual cash
flows and matching the maturity profile of financial assets and liabilities.
The following table details the Group’s expected maturity for its non-derivative financial liabilities.
The table below has been drawn up based on the undiscounted contractual maturities of the financial
liabilities including interest that will accrue for those liabilities except where the Group is entitled
and intense to repay the liability before its maturity. The adjustment column represents the possible
future cash flows attributable to the instrument included in the maturity analysis which are not
included in the carrying amount of the financial liability on the balance sheet.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
76
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Liquidity risk management (cont’d)
Maturity analysis of assets and liabilities are as follows; 31 December 2009
Current Less than 1 month 1 - 3 months 3 - 12 months
1 year and
thereafter Undistributed Total
ASSETS
Cash and cash equivalents 11.488.707 739.535.648 620.800.744 - - - 1.371.825.099
Financial investments 120.268.108 130.310 57.501.205 158.748.030 57.760.876 - 394.408.529
Trade receivables 499.132.782 92.936.099 - - - - 592.068.881
Other receivables 63.410 22.628.019 - - - - 22.691.429
Other current / non-current assets - 62.065 702.184 6.541.635 - - 7.305.884
Long-term financial investments - - - - 18.208.365 - 18.208.365
Investments accounted for under equity method - - - - - 37.214.660 37.214.660
Tangible fixed assets - - - - - 8.150.043 8.150.043
Intangible fixed assets - - - - - 1.527.344 1.527.344
Deferred tax assets - - - - - 1.119.220 1.119.220
Total assets 630.953.007 855.292.141 679.004.133 165.289.665 75.969.241 48.011.267 2.454.519.454
LIABILITIES
Financial liabilities - 866.998.586 455.795.407 - - - 1.322.793.993
Other financial liabilities 2.468.315 24.384 63.194 2.051 - - 2.557.944
Trade payables 471.108.722 116.582.906 - - 9.933.016 - 597.624.644
Other payables 753 5.432.955 - 1.158 - - 5.434.866
Current tax payable - - 1.434.617 - - - 1.434.617
Provisions 515.000 971 - - - 13.335 529.306
Provisions related to employee benefits - - - - - 5.217.438 5.217.438
Other current liabilities - 1.552.457 1.766.387 - - - 3.318.844
Deferred tax liabilities - - - - - - -
Total liabilities 474.092.790 990.592.259 459.059.605 3.209 9.933.016 5.230.773 1.938.911.652
Shareholders’ Equity - - - - - 334.180.287 334.180.287
Minority interest - - - - - 181.427.515 181.427.515
Liquidity surplus / (gap) 156.860.217 (135.300.118) 219.944.528 165.286.456 66.036.225 (472.827.308) -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
77
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Liquidity risk management (cont’d)
31 December 2008
Current Less than 1 month 1 - 3 months 3 - 12 months
1 year and
thereafter Undistributed Total
ASSETS
Cash and cash equivalents 2.511.887 382.265.486 548.272.514 - - - 933.049.887
Financial investments 65.514.677 13.779.110 30.769.007 92.152.007 41.800.020 - 244.014.821
Trade receivables 148.181.088 89.378.771 - - - - 237.559.859
Other receivables 201.520 1.894.921 43.826 - - - 2.140.267
Other current / non-current assets - - 939.112 10.859.024 369.506 - 12.167.642
Long-term financial investments - - - - 9.619.819 - 9.619.819
Investments accounted for under equity method - - - - - 35.802.580 35.802.580
Tangible fixed assets - - - - - 5.578.973 5.578.973
Intangible fixed assets - - - - - 1.301.180 1.301.180
Deferred tax assets - - - - - 1.604.365 1.604.365
Total assets 216.409.172 487.318.288 580.024.459 103.011.031 51.789.345 44.287.098 1.482.839.393
LIABILITIES
Financial liabilities - 356.491.358 532.776.363 - - - 889.267.721
Other financial liabilities 919.500 - 2.002.247 - - - 2.921.747
Trade payables 92.284.590 74.307.696 - - - - 166.592.286
Other payables 753 6.612.424 - 989 24.210 - 6.638.376
Current tax payable - - 644.443 - - - 644.443
Provisions - 21.471 - - - 364.665 386.136
Provisions related to employee benefits - - 2.742.095 591.640 - 1.265.522 4.599.257
Other current liabilities - 1.768.421 45.005 45.970 - - 1.859.396
Total liabilities 93.204.843 439.201.370 538.210.153 638.599 24.210 1.630.187 1.072.909.362
Shareholders’ Equity - - - - - 272.688.675 272.688.675
Minority interest - - - - - 137.241.356 137.241.356
Liquidity surplus / (gap) 123.204.329 48.116.918 41.814.306 102.372.432 51.765.135 (367.273.120) -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
78
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Liquidity risk management (cont’d)
31 December 2009
Maturities
Carrying
value Adjustments
Total cash
outflow
(I+II+III+IV)
Less than
3 months
(I)
3 - 12
months
(II)
1 - 5 years
(III)
More than
5 years
(IV)
Non-derivative financial liabilities
Bank loans 189.233.745 - 189.233.745 189.233.745 - - -
Finance lease payables - - - - - - -
Trade payables 597.624.644 - 597.624.644 597.624.644 - - -
Payables to Stock Exchange Money Market 1.133.560.248 (4.975.747) 1.138.535.995 1.138.535.995 - - -
Total 1.920.418.637 (4.975.747) 1.925.394.384 1.925.394.384 - - -
Maturities Carrying
value Adjustments
Total cash
outflow
(I+II+III+IV)
Less than
3 months
(I)
3 - 12
months
(II)
1 - 5 years
(III)
More than
5 years
(IV)
Derivative financial instruments
Derivative cash inflows 47.883.644 474.308 47.409.336 45.853.464 1.555.872 - -
Derivative cash outflows (51.878.589) 32.928 (51.911.517) (51.002.395) (909.122) - -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
79
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Liquidity risk management (cont’d)
31 December 2008
Maturities
Carrying
value Adjustments
Total cash
outflow
(I+II+III+IV)
Less than
3 months
(I)
3 - 12
months
(II)
1 - 5 years
(III)
More than
5 years
(IV)
Non-derivative financial liabilities
Bank loans - - - - - - -
Finance lease payables - - - - - - -
Trade payables 166.592.286 - 166.592.286 166.592.286 - - -
Payables to Stock Exchange Money Market 889.267.721 (11.919.729) 901.187.450 901.187.450 - - -
Total 1.055.860.007 (11.919.729) 1.067.779.736 1.067.779.736 - - -
Maturities
Carrying
value Adjustments
Total cash
outflow
(I+II+III+IV)
Less than
3 months
(I)
3 - 12
months
(II)
1 - 5 years
(III)
More than
5 years
(IV)
Derivative financial instruments
Derivative cash inflows 76.076.453 (385.074) 76.461.527 76.393.473 68.054 - -
Derivative cash outflows (93.128.042) 1.314.258 (94.442.300) (94.244.189) - (198.111) -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
80
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Foreign currency risk management
Foreign currency risk is the risk of volatility in the foreign currency denominated monetary assets,
monetary liabilities and off-balance sheet liabilities due to changes in currency exchange rates. The
breakdown of the Group’s foreign currency denominated monetary assets and monetary liabilities as
of 31 December 2009 are as follows:
31 December 2009
TL
Equivalent USD Euro Yen GBP Other
1. Trade receivables 35.788.906 23.651.113 59.847 - 20.148 -
2a. Monetary financial assets 5.197.708 2.425.745 714.300 - - -
2b. Non-monetary financial assets 1.991.415 186.677 791.712 - - -
3. Other - - - - - -
4. Current assets 42.978.029 26.263.535 1.565.859 - 20.148 -
5. Trade receivables - - - - - -
6a. Monetary financial assets - - - - - -
6b. Non-monetary financial assets - - - - - -
7. Other - - - - - -
8. Non-current assets - - - - - -
9. Total Assets 42.978.029 26.263.535 1.565.859 - 20.148 -
10. Trade payables - - - - - -
11. Financial liabilities 37.044.488 24.439.627 82.623 - 28.148 -
12a. Other monetary liabilities - - - - - -
12b. Other non-monetary liabilities - - - - - -
13. Short-term liabilities 37.044.488 24.439.627 82.623 - 28.148 -
14. Trade payables - - - - - -
15. Financial liabilities - - - - - -
16a. Other monetary liabilities - - - - - -
16b. Other non-monetary liabilities - - - - - -
17. Long-term liabilities - - - - - -
18. Total liabilities 37.044.488 24.439.627 82.623 - 28.148 -
19. Off-balance sheet derivative instruments’
net asset / (liability) position (19a - 19b) 766.436 (811.989) 479.000 - - -
19a. The amount of long-position off-balance
sheet derivative instruments denominated in
foreign currency 28.726.615 13.500.512 3.000.000 - 312.476 -
19b. The amount of short-position off-balance
sheet derivative instruments denominated in
foreign currency 27.960.179 14.312.501 2.521.000 - 312.476 -
20 Net foreign currency asset / (liability)
position (9-18+19) 6.699.977 1.011.919 1.962.236 - (8.000) -
21. Net foreign currency asset / (liability)
(position of monetary items (=1+2a+5+6a-
10-11-12a-14-15-16a) 3.942.126 1.637.231 691.524 - (8.000) -
22. Fair value of derivative instruments used in
foreign currency hedge - - - - - -
23. Hedged portion of foreign currency assets - - - - - -
24. Hedged portion of foreign currency
liabilities - - - - - -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
81
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Foreign currency risk management (cont’d)
Foreign currencies or receivables and payables denominated in foreign currencies as of 31
December 2008 are as follows:
31 December 2008
TL
Equivalent USD Euro Yen GBP Other
1. Trade receivables - - - - - -
2a. Monetary financial assets 4.925.460 2.743.796 177.893 - - -
2b. Non-monetary financial assets 2.305.462 675.118 600.000 - - -
3. Other - - - - - -
4. Current assets 7.230.922 3.418.914 777.893 - - -
5. Trade receivables - - - - - -
6a. Monetary financial assets - - - - - -
6b. Non-monetary financial assets - - - - - -
7. Other - - - - - -
8. Non-current assets - - - - - -
9. Total Assets 7.230.922 3.418.914 777.893 - - -
10. Trade payables - - - - - -
11. Financial liabilities - - - - - -
12a. Other monetary liabilities - - - - - -
12b. Other non-monetary liabilities - - - - - -
13. Short-term liabilities - - - - - -
14. Trade payables - - - - - -
15. Financial liabilities - - - - - -
16a. Other monetary liabilities - - - - - -
16b. Other non-monetary liabilities - - - - - -
17. Long-term liabilities - - - - - -
18. Total liabilities - - - - - -
19. Off-balance sheet derivative instruments’
net asset / (liability) position (19a - 19b) 310.021 205.000 - - - -
19a. The amount of long-position off-balance
sheet derivative instruments denominated in
foreign currency 72.501.174 47.941.000 - - - -
19b. The amount of short-position off-balance
sheet derivative instruments denominated in
foreign currency 72.191.153 47.736.000 - - - -
20 Net foreign currency asset / (liability)
position (9-18+19) 7.540.943 3.623.914 777.893 - - -
21. Net foreign currency asset / (liability)
(position of monetary items (=1+2a+5+6a-
10-11-12a-14-15-16a) 4.925.460 2.743.796 177.893 - - -
22. Fair value of derivative instruments used in
foreign currency hedge - - - - - -
23. Hedged portion of foreign currency assets - - - - - -
24. Hedged portion of foreign currency
liabilities - - - - - -
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
82
38. NATURE AND LEVEL OF RISKS DERIVED FROM FINANCIAL INSTRUMENTS (cont’d)
Foreign currency risk management (cont’d)
Based on the balance sheets positions as of 31 December 2009 and 31 December 2008, if the value
the Turkish Lira would increase or decrease by 10% against other hard currencies assuming each
other variables remained constant, the Group’s net profit or loss would change due to foreign
currency gains or losses of financial assets and liabilities denominated in foreign currencies as
follows:
31 December 2009
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Foreign currency risk 10% Increase 1.215.566 181.051
Decrease (1.091.268) (181.051)
31 December 2008
Type of risk Risk rate
Direction of
risk
Effect on the
net profit
Effect on the
equity
Foreign currency risk 10% Increase 6.514.499 388.211
Decrease (7.102.259) (388.211)
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
83
39. FINANCIAL INSTRUMENTS
Categories of Financial Instruments:
31 December 2009
Other financial
assets measured
with effective
interest method
Loans and
receivables
Available for
sale financial
assets
Financial assets
and liabilities at
fair value
through profit
or loss
Other financial
liabilities
measured with
effective interest
method
Carrying
Amount Fair Value Note
Financial assets
Cash and cash equivalents 1.367.563.884 - - 4.261.215 - 1.371.825.099 1.371.825.099 6
Trade receivables - 592.068.881 - - - 592.068.881 592.068.881 10
Financial investments 18.208.365 - 13.952.204 380.456.325 - 412.616.894 412.616.894 7
Financial liabilities
Financial liabilities - - - - 1.322.793.993 1.322.793.993 1.322.793.993 8
Trade payables - - - - 597.624.644 597.624.644 597.624.644 10
Other financial liabilities - - - 2.557.944 - 2.557.944 2.557.944 9
31 December 2008
Financial assets
Cash and cash equivalents 932.999.950 - - 49.937 - 933.049.887 933.049.887 6
Trade receivables - 237.599.859 - - - 237.559.859 237.559.859 10
Financial investments 9.619.819 - 7.544.651 236.470.170 - 253.634.640 253.634.640 7
Financial liabilities
Financial liabilities - - - - 889.267.721 889.267.721 889.267.721 8
Trade payables - - - - 166.592.286 166.592.286 166.592.286 10
Other financial liabilities - - - 2.921.747 - 2.921.747 2.921.747 9
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
84
39. FINANCIAL INSTRUMENTS (cont’d)
Fair Value of Financial Instruments:
Fair value is the amount for which an asset could be exchanged or a liability settled, between
knowledgeable willing parties in an arms length transaction.
The estimated fair values of financial instruments have been determined by the Group using
available market information and appropriate valuation methodologies. However, judgment is
necessarily required to interpret market data to develop the estimated fair value. Accordingly, the
estimates presented herein may not necessarily be indicative of the amounts the Group could realize
in a current market exchange.
There is no active market for loans in order to obtain available comparative market price and these
instruments are discounted or subject to transaction costs when they are sold or utilized before their
maturities. Fair value of these instruments could not be estimated due to the lack of necessary
reliable market data. Accordingly, the carrying amount of such instruments is deemed to be a
consistent indicator of the fair value.
The following methods and assumptions are used to estimate the fair value of each class of financial
instrument for which it is practicable to estimate fair value:
Financial Assets:
Carrying amounts of financial assets measured at amortized cost including cash and cash equivalents
and other financial assets approximate their fair values due to their short-term nature and the
assumption of immaterial potential losses in exchange of these assets.
Market prices are used in determination of fair values of government bonds, treasury bills and equity
shares.
Financial Liabilities:
The carrying amount of monetary liabilities approximates their fair values due to their short-term
nature.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
85
39. FINANCIAL INSTRUMENTS (cont’d)
Fair Value of Financial Instruments (cont’d):
Valuation methods of the financial assets at fair value through profit and loss:
31 December 2009
Financial assets at fair value through profit and loss Total Category 1 Category 2 Category 3
Equity shares 95.850.621
95.850.621
-
-
Government bonds and Treasury bills 238.457.153
238.457.153
-
-
Foreign currency securities 206.364
206.364
-
-
Private sector bonds 35.282.933
35.282.933
-
-
Mutual funds 10.465.287
10.465.287
-
-
Income accruals of derivative instruments
193.967
-
193.967
-
Available for sale financial assets 13.952.204
11.094.322
-
2.857.882
Held to maturity financial assets
18.208.365 -
-
18.208.365
Total 412.616.894
391.356.680
193.967
21.066.247
31 December 2008
Financial assets at fair value through profit and loss Total Category 1 Category 2 Category 3
Equity shares 54.077.043
54.077.043
-
-
Government bonds and Treasury bills 113.133.024
113.133.024
-
-
Foreign currency securities 929.302
929.302
-
-
Private sector bonds 56.696.457
36.538.457
-
20.158.000
Mutual funds 10.793.542
10.793.542
-
-
Income accruals of derivative instruments
840.802 -
840.802
-
Available for sale financial assets 7.544.651
4.686.769
-
2.857.882
Held to maturity financial assets
9.619.819 -
-
9.619.819
Total 253.634.640
220.158.137
840.802
32.635.701
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
86
39. FINANCIAL INSTRUMENTS (cont’d)
Fair Value of Financial Instruments (cont’d):
The fair value of financial assets and liabilities are determined as follows:
First category: Implies that in determining the fair values of assets and liabilities, active market
trading price is used for valuation purposes.
Second category: Implies that in determining the fair values of assets and liabilities, should other
market price be observed other than first degree market prices, then observed market price is
used for valuation purposes.
Third category: Implies that in determining the fair values of assets and liabilities, data not based
on market observation is used for valuation purposes.
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
87
39. FINANCIAL INSTRUMENTS (cont’d)
Exposed credit risks through types of financial instruments:
31 December 2009
Receivables Cash and cash equivalents
Trade Receivables Other Receivables
Related
parties
Third
parties
Related
parties
Third
parties
Financial
assets
Bank
deposits
Reverse
repo
B type
liquid
mutual
funds
Receivables
from money
markets Other
Maximum credit risk exposure as of report date 1.636.840 590.432.041 19.882 22.671.547 412.616.894 1.351.935.772 15.622.217 4.261.215 - 4.590.300
The part of maximum risk under guarantee with collateral etc. - 455.570.512 - - 256.665.518 - 15.622.217 - - 4.590.300
A. Net book value of financial assets that are neither past due
nor impaired 1.636.840 590.432.041 19.882 22.671.547 412.616.894 1.351.935.772 15.622.217 4.261.215 - -
B. Net book value of financial assets that are renegotiated, if
not that will be accepted as past due or impaired - - - - - - - - - -
C. Carrying value of financial assets that are past due but not
impaired - - - - - - - - - -
-the part under guarantee with collateral etc - - - - - - - - - -
D. Net book value of impaired assets - - - - - - - - - -
- Past due (gross carrying amount) - - - - - - - - - -
- Impairment (-) - - - - - - - - - -
- The part of net value under guarantee with collateral etc. - - - - - - - - - -
- Not past due (gross carrying amount) - - - - - - - - - -
- Impairment (-) - - - - - - - - - -
- The part of net value under guarantee with collateral etc. - - - - - - - - - -
E. Off-balance sheet items with credit risk - - - - - - - - - 4.590.300
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
88
39. FINANCIAL INSTRUMENTS (cont’d)
Exposed credit risks through types of financial instruments (cont’d):
31 December 2008
Receivables Cash and cash equivalents
Trade Receivables Other Receivables
Related
parties
Third
parties
Related
parties
Third
parties
Financial
assets
Bank
deposits
Reverse
repo
B type
liquid
mutual
funds
Receivables
from money
markets Other
Maximum credit risk exposure as of report date 2.468.456 235.091.403 33.073 2.107.194 253.634.640 910.277.249 22.583.027 49.937 120.048 4.536.900
The part of maximum risk under guarantee with collateral etc. - 129.651.896 - - 122.752.843 - 22.583.027 - - 4.536.900
A. Net book value of financial assets that are neither past due
nor impaired 2.468.456 235.091.403 33.073 2.107.194 253.634.640 910.277.249 22.583.027 49.937 120.048 -
B. Net book value of financial assets that are renegotiated, if
not that will be accepted as past due or impaired - - - - - - - - - -
C. Carrying value of financial assets that are past due but not
impaired - - - - - - - - - -
-the part under guarantee with collateral etc - - - - - - - - - -
D. Net book value of impaired assets - - - - - - - - - -
- Past due (gross carrying amount) - - - - - - - - - -
- Impairment (-) - - - - - - - - - -
- The part of net value under guarantee with collateral etc. - - - - - - - - - -
- Not past due (gross carrying amount) - - - - - - - - - -
- Impairment (-) - - - - - - - - - -
- The part of net value under guarantee with collateral etc. - - - - - - - - -
E. Off-balance sheet items with credit risk - - - - - - - - - 4.536.900
Ġġ YATIRIM MENKUL DEĞERLER A.ġ. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2009
(Amounts are expressed in Turkish Lira (“TL”) unless otherwise indicated.)
89
40. SUBSEQUENT EVENTS
In accordance with the decision of the General Assembly dated 18 January 2010 and the permission
of the Capital Markets Board dated 24 December 2009, the Company has started to apply registered
capital ceiling system for the periods from 2009 to 2013. The registered capital of the Company is
TL 300.000.000 and is divided into 300.000.000 shares with a nominal par value of TL 1 each.
In accordance with the decision of the Board of Directors numbered 826 and dated 29 January 2010,
the Company has decided to issue the ISE National 30 Index Call Warrant with a nominal value of
TL 25.000.000 and a maturity of 6 months and issue the ISE National 30 Index Put Warrant with a
nominal value of TL 25.000.000 and a maturity of 6 months. As of the date of this report the process
related to issuance of these is ongoing.
In accordance with the permission of the Capital Markets Board numbered 834 and dated 25
February 2010, it has been decided to open a new branch in Bursa with title “ĠĢ Yatırım Menkul
Değerler A.ġ. Bursa ġubesi”.
41. OTHER ISSUES THAT SIGNIFICANTLY EFFECT THE FINANCIAL STATEMENTS OR
OTHER ISSUES REQUIRED FOR THE CLEAR UNDERSTANDING OF FINANCIAL
STATEMENTS
None.
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